(Adds details in 5th paragraph and Blackstone statement in 6th paragraph)
Dec 15 (Reuters) – Finnish property management company Sponda Oy reached an agreement with creditors on Friday to extend a 300 million euro ($327.09 million) loan it defaulted on earlier this year. It was announced that.
Sponda, which was acquired by private equity group Blackstone in 2017, secured an extension to the deal until February 2027.
The extension will help continue the asset management business and dispose of non-core assets in Greater Helsinki and Tampere.
The loan was backed by a €531 million bond, which was backed by a portfolio of offices and stores owned by Sponda. Reuters reported in March that Blackstone defaulted on its bonds after bondholders refused to extend its debt repayments.
Blackstone secured better terms than previously rejected terms by increasing the margin by 150 basis points, the people said.
“As I have said from the beginning, the extension is [of the loan] “As trading markets recover, Sponda is best placed to complete the orderly disposal of these non-core assets,” Blackstone said in a statement ($1 = 0.9172 euros).
(Reporting by Gokul Pisharodi in Bengaluru and Anne Kaulanen in Helsinki; Additional reporting by Chandni Shah in Bengaluru; Editing by Kirsten Donovan and Josie Kao)