Stora Enso OYJ: Consent solicitation: the price of approval

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Stora Enso OYJ: Consent solicitation: the price of approval

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Stora Enso OYJ

Consent solicitation: the price of approval

Rating Change - Credit

Consent solicitation ahead of Swedish forest asset spin 19 June 2026

Stora Enso has launched a consent solicitation requesting bondholders approve High Grade Credit

extraordinary resolutions to facilitate the 100% spin-off of its Swedish forest assets. Finland

The resolutions seek to sanction the transaction, waive any (alleged) breaches (including Paper/Forest Products

potential Events of Default) arising from the spin, and confirm that the separation will William Dennis

not trigger an Event of Default. The request also includes a waiver of any statutory Research Analyst

rights of noteholders under Finnish law to object to the spin. An early instruction fee of MLI+44 (UK)20 7996 1251

0.35% (of principal) is offered to holders voting early and in favour of the relevant william.dennis@bofa.com

resolutions. Approval requires a 75% majority of votes cast, with quorum representing

more than 50% of outstanding principal. The early instruction deadline is 5pm CEST, 26th

June 2026.

Overweight STERV €30s. Buy Protection on 5Y CDS

We reiterate our Overweight on STERV €30s, on LME upside relative to both the current

price (€94.85) and the modest early instruction fee (+0.35%), and a near-term separation

catalyst (see Exhibit 5). Bondholders are likely to request higher compensation, as we

expect the spin to weaken Stora Enso’s credit profile post-spin, given the loss of a

material earnings contributor (c. 33% of FY25 EBITDA, see Exhibit 3). We remain

Marketweight across the rest of the senior curve given near-par price levels, and

recommend Buy Protection on 5Y CDS, reflecting anticipated credit deterioration and