Friendly business combination with Eurosic: Gecina successfully places a bond issue with three tranches for a total amount of 1.5 billion euros
Gecina has today successfully placed a bond issue in three tranches for a total amount of 1.5 billion euros with an average coupon of 1.3% and an average maturity of 10 years:
- 500 million euros for five years (maturing in June 2022), with a variable coupon based on the 3 month Euribor + 38 bp (equivalent to a coupon of 0.5%)
- 500 million euros for 10 years (maturing in June 2027), with a coupon of 1.375%
- 500 million euros for 15 years (maturing in June 2032), with a coupon of 2.0%
With strong demand totaling around 5.5 billion euros, these three bond issues were nearly four times oversubscribed by a broad base of top-tier investors, confirming the market's confidence in the credit ratings of both Gecina and the combined unit created with Eurosic.
Carried out under particularly favorable market conditions, these issues are intended to refinance part of the 2.5 billion euro bridge financing set up for the business combination with Eurosic, with the remaining balance to be refinanced through a capital increase with preferential subscription rights for 1.0 billion euros. This business combination operation, announced on June 21, 2017, is in line with Gecina's total return strategy and will enable it to become Europe's fourth largest real estate group with a 19.3 billion euro portfolio.
These issues are effectively aligned with Gecina's overall financing strategy, enabling it to extend the average maturity of its debt, reduce its average cost and optimize its credit maturities, while combining short-term flexibility with long-term security.
Gecina is rated BBB+ / outlook positive by Standard & Poor’s and A3 / outlook negative by Moody’s.
BNP Paribas, Crédit Agricole CIB, Deutsche Bank, Goldman Sachs, Morgan Stanley, Natixis, Société Générale, CM-CIC, HSBC, ING and JP Morgan were the bookrunners for this issue.
Not for distribution in the United States, Australia, Canada or Japan. This press release does not constitute an offer of securities in the United States or in any other country. The bonds may not be offered or sold in the United States of America unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended. Gecina does not intend to register all or part of the offering in the United States or to conduct a public offering in the United States.
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Gecina: fourth largest European real estate group following the friendly business combination with Eurosic, with 19.3 billion euros of assets.
Europe's leading real estate group for offices, with 15.3 billion euros of assets. This operation will be accretive of 10% on recurrent net income per share on a full year basis.[...]
Paris, France, June 21, 2017
Executive Director Communications, Public Affairs and Brand