On June 28, 2019, Prime Living announced that the company had entered into a so-called standstill agreement regarding the company's secured bond loan of SEK 400 million and the secured shareholder loan of approximately SEK 39.3 million. This standstill agreement expired last Friday.

The company has long discussions with a number of creditors and is now presenting a plan to recapitalize the company and create a sustainable capital structure.

The plan contains the following main points:

• Bond loans with ISIN SE0009155286 with a total issued amount of SEK 400 million ("Oxie Bond") will be extended to September 2022.

• Bond loans with ISIN SE0010985218 with a total issued amount of SEK 100 million, raised by Prime Living Campus Stockholm AB (publ) ("Campus Stockholm Bond") are extended to October 2023, the interest rate is reduced to 4.5 percent and SEK 56.8 million (nominal amounts of SEK 50 million and accrued interest of SEK 6.8 million) are converted into ordinary shares.

• Bond loans with ISIN SE0009806383 with a total issued amount of SEK 400 M ("Senior Unsecured Bond") are extended until October 2023, the interest rate is reduced to 4.5 percent and SEK 231 M (nominal amount of SEK 210 M and accrued interest of SEK 21 M) is converted to common stock.

• Campus Stockholm Bond and Senior Unsecured Bond may share collateral in shares in some of the Company's directly wholly owned subsidiaries that have not been pledged to secure other obligations.

• The secured shareholder loan of approximately SEK 39.3 million raised by the Company in March 2019 (the "Shareholder Loan") will be repaid with an amount of SEK 29.5 million and SEK 9.8 million will be converted into ordinary shares (the "Conversion").

• An exchange offer is given to the owners of Series B preference shares, whereby a preference share is exchanged for 20 ordinary shares (the "Exchange Offer"). An exchange offer is implemented through the redemption of the preference shares and a directed new issue of ordinary shares, whereby the redemption claim is set off against new ordinary shares.

• The implementation of the changes regarding the Oxie Bond, the Campus Stockholm Bond and the Senior Unsecured Bond requires the approval of the bondholders with the required majority. The company intends to initiate a written procedure with the aim of changing the terms.

• The issue of shares requires the decision of the AGM. The Board intends to convene an Extraordinary General Meeting to be held on October 31, 2019.

• An ad hoc creditors' committee, consisting of bondholders, supports the proposal for bond changes.

• The company's main owner supports the proposal and has offered to vote for the issues.

Prime Livings CEO Lars Wikström comments on the proposal:

"Since Prime Living's report for the first half of 2019, the intensive work has continued towards the goal of creating sound, long-term sustainable and financially stable operations. We have now reached a point where we can present a detailed, complete and balanced proposal for a settlement with bondholders, holders of Series B preference shares and certain lenders."

"We have made extensive efforts to negotiate with and anchor the proposal with bondholders, holders of the Series B preference shares, lenders and the largest common stockholders. It is my firm conviction that the proposal is balanced, attractive to all parties and therefore has realistic prospects to be implemented. Together with the announced, planned and imminent sale of the company's Irish property in Sandyford, the proposal, if implemented, would mean that the company will be able to continue to operate and in the long term give us the opportunity to realize the potential of the project portfolio."

"I consider this to be the best opportunity to reach a settlement that gives the business a sustainable capital structure. Should the proposal be rejected at the planned bond meeting and / or at the upcoming Extraordinary General Meeting, I consider that there are no conditions for continued operation of the company's operations."

"I now look forward with confidence to the next steps in the now published plan."