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Deutsche Annington Immobilien SE completes entire refinancing with successful bond issues in Europe and US


Deutsche Annington Immobilien SE / Key word(s): Issue of Debt/Capital Reorganisation

02.10.2013 / 16:00


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PRESS RELEASE

Deutsche Annington completes entire refinancing with successful bond issues in Europe and US

- Deutsche Annington fully repays EUR 2.3 billion term loan with proceeds from bond issues in Europe and in the US

- Deutsche Annington successfully completes USD 1.0 billion debut transaction in US bond market; the largest US bond issued by a European property company

- EUR 4.0 billion European Medium Term Note (EMTN) programme incorporated; first issuance of EUR 500 million priced

Bochum, 2 October 2013 - Deutsche Annington Immobilien SE ('Deutsche Annington') fully reduced its unsecured EUR 2.3 billion term loan which has been drawn in July 2013 to repay the company's liabilities towards German Residential Asset Note Distributor P.L.C. ('GRAND'). The repayment succeeded via the successful issuances of an US bond as well as of a bond under the new EMTN programme. With this, Deutsche Annington finally concludes its refinancing of GRAND.

The proceeds from the two new issuances, the debut dual US bond issuance of EUR 740 million and the EUR 500 million EMTN bond issuance are used to fully repay the term loan after only two and a half months; a partial repayment of the term loan had already been implemented via the proceeds from the Eurobond issuance of EUR 1.3 billion in July 2013. The remaining proceeds will be used to repay other secured debt and increase the ratio of unencumbered assets further.

With a total nominal volume of USD 1.0 billion (EUR 740 million respectively), Deutsche Annington for the first time has accessed the US bond market. The debut transaction is the second largest debut corporate real estate bond in the US and the largest US bond issued by a European property company. The US bond is a dual-tranche with terms of 4 and 10 years. The bond is fully hedged against any currency risks. The terms of the bonds are set forth in the table below:

Term
(in years)
Nominal Amount
(in USD million)
Coupon
(in percentage)
 
EUR-equivalent re-offer yield after hedging
Issue amount
(as percentage of the nominal amount)
4 750 3.20% 2.97% 100
10 250 5.00% 4.68% 98.993
 

In addition to the US bond, Deutsche Annington has launched an European Medium Term Note (EMTN) programme with a volume of EUR 4.0 billion. Under this programme the first issuance with a volume of EUR 500 million was priced as of the 1st October 2013. The EMTN program allows Deutsche Annington going forward to flexibly issue bonds in various currencies and with varying maturities on the Euro bond market. The issuance under the EMTN programme has the following key terms:

Term
(in years)
Nominal Amount
(in EUR million)
Coupon
(in percentage)
Issue amount
(as percentage of the nominal amount)
8 500 3,625% 99.843
 

All bonds have the same covenant structure which meet European as well as US standards and thus enable Deutsche Annington to tap into the European and the US bond markets. All have been rated 'BBB' by Standard & Poor's. The bonds, issued by Deutsche Annington Finance B.V., are guaranteed by Deutsche Annington Immobilien SE, which is also rated 'BBB' with a stable outlook by Standard & Poors.

The issuances conclude all major refinancing needs until April 2015 and will lead to average interest costs of Deutsche Annington's debt of 3.3% in 2014.

'The ability to raise unsecured debt both in the European as well as the US capital markets demonstrates the company's agility in these markets', said Dr. A. Stefan Kirsten, CFO of Deutsche Annington. 'I am excited that after almost three years we have now successfully concluded the refinancing of GRAND, Europe's largest securitization project to date. With the latest transactions, Deutsche Annington has successfully completed its comprehensive refinancing via five benchmark issuances in Europe and the US with an overall volume of approx. EUR 2.5 billion - and this only within a period of less than three months - underpinning once more the financial strength and attractiveness of our business. The various successfully closed financings this year are testimony for the deep trust with all our financial partners.'

'Furthermore this is a proof point for the consequent implementation of our corporate strategy', said Rolf Buch, CEO of Deutsche Annington. 'We now possess the financial flexibility to develop Deutsche Annington in the interest of our customers, shareholders and employees and to enhance the company's potential.'

Additional information:
Stock exchange: Regulated Market (Prime Standard), Frankfurt Stock Exchange
ISIN: DE000A1ML7J1
WKN: A1ML7J
Common Code: 094567408
Registered office of Deutsche Annington: Vogelsanger Weg 80, 40472 Dusseldorf, Germany
Business address of Deutsche Annington: Philippstrasse 3, 44803 Bochum, Germany

IR contact:
Florian Goldgruber
+49 234 314 1761
investorrelations@deutsche-annington.com

Press contact:
Jana Gantenberg
+49 234 314 1926
Jana.Gantenberg@deutsche-annington.com

This publication may not be published, distributed or transmitted, directly or indirectly, in the United States (including its territories and possessions), Canada, Japan or Australia or any other jurisdiction where such an announcement would be unlawful. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession this document or other information referred to herein should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This publication does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities of Deutsche Annington Immobilien SE or of any of its subsidiaries in the United States, Germany or any other jurisdiction. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. The securities referred to herin may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the 'Securities Act'). The securities of Deutsche Annington Immobilien SE have not been, and will not be, registered under the Securities Act.

In the United Kingdom, this document is only being distributed to and is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the 'Order') or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.) (all such persons together being referred to as 'Relevant Persons'). This document is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

In member states of the European Economic Area ('EEA') which have implemented the Prospectus Directive (each, a 'Relevant Member State'), this announcement and any offer if made subsequently is directed exclusively at persons who are 'qualified investors' within the meaning of the Prospectus Directive ('Qualified Investors'). For these purposes, the expression 'Prospectus Directive' means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in a Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression '2010 PD Amending Directive' means Directive 2010/73/EU.

No action has been taken that would permit an offering of the securities or possession or distribution of this announcement in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.

This information contains forward-looking statements that are based upon current views and assumptions of the Deutsche Annington Immobilien SE management, which were made to its best knowledge. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which could cause the earnings position, profitability, performance or the results of Deutsche Annington Immobilien SE or the success of the housing industry to differ materially from the earnings position, profitability, performance or the results expressly or implicitly assumed or described in these forward-looking statements. In consideration of these risks, uncertainties and other factors, persons receiving these documents are advised not to unreasonably rely on these forward-looking statements. Deutsche Annington Immobilien SE does not assume any obligation to update such forward-looking statements and to adjust them to any future results and developments.

 



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233184  02.10.2013


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