Deutsche Annington Immobilien SE / Key word(s): Issue of Debt/Capital Reorganisation
02.10.2013 / 16:00
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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:
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:
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.'
Stock exchange: Regulated Market (Prime Standard), Frankfurt Stock Exchange
Common Code: 094567408
Registered office of Deutsche Annington: Vogelsanger Weg 80, 40472 Dusseldorf, Germany
Business address of Deutsche Annington: Philippstrasse 3, 44803 Bochum, Germany
+49 234 314 1761
+49 234 314 1926
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