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Convertible Bonds
CEO Olivier Elamine said, “With this placement of our second bond we've concluded the refinancing of the debt of Deutsche Office. Following our debut bond in November last year, we have successfully managed to establish Alstria in the public credit market as demonstrated by the very strong demand that the order book generated.”
Germany's first REIT, the Hamburg-headquartered Alstria Office REIT AG, placed its second €500m corporate bond to conclude the refinancing of its October 2015 takeover of DO Deutsche Office.
The bond was a euro-denominated, unsecured, seven-year fixed rate bond paying a 2.125% coupon. Alstria said the order book was ten times oversubscribed. CEO Olivier Elamine said, “With this placement of our second bond we've concluded the refinancing of the debt of Deutsche Office. Following our debut bond in November last year, we have successfully managed to establish Alstria in the public credit market as demonstrated by the very strong demand that the order book generated.”
The bond was given apreliminary BBB rating from Standard & Poor's, and will be traded on the regulated market of the Luxembourg Stock Exchange.
Alstria closed on its €800m takeover of DO Deutsche Office last year with more than 94% acceptance and plans to de-list the Oaktree-backed company.
Just last week Alstria published its full-year results for 2015. Revenues for the year were €115m, while the key funds from operations (FFO) improved by 26% to €60m, slightly better than the €59m the company had been guiding. The consolidated net profit (loss) was -€111.4m, basically caused by the full impairment of the €144.8m technically incurred in buying DO Deutsche Office.
Alstria’s equity ratio - in its earlier years a constant source of concern for the company - was 49.4% on December 31st, and its net LTV was 49.3%. The EPRA NAV per share was €10.91, while the share price is about €12.50, after a steady run-up of nearly 40% over the past three years in line with its peers
