Shearman And Sterling

News June 21, 2022

Preem’s €340 Million Green Bond Offering

Shearman & Sterling represented the initial purchasers in connection with Preems €340 million offering of 12.000% senior notes due 2027 by Preem Holding AB (publ). The offering, which was conducted pursuant to Rule 144A and Regulation S under the U.S. Securities Act, closed on June 21, 2022. Shearman & Sterling also advised the banks in connection with the company’s new intercreditor agreement.

The proceeds of the offering of the notes, together with available cash and cash equivalents, will be used to repay in full Preems existing term loan, including accrued interest, and to pay transaction costs, fees and expenses. Preem intends to allocate an amount equal to the net proceeds raised by the offering, in accordance with its new green financing framework, to eligible green projects, renewable raw materials and assets. Preem estimates that around 60% of allocated funds will relate to capital expenditures to increase renewable fuels production and the remainder to procurement of renewable feedstock.

Preem is Swedens largest fuel company. The company's vision is to lead the transition toward a sustainable society. Preem refines and sells gasoline, diesel, heating oil and renewable fuels to companies and consumers in Sweden and abroad. The company also has a nationwide service network of fuel stations for private and commercial traffic.

The Shearman & Sterling team below included Sydney Kane (New York-Tax).

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