Lar España has completed a debt repurchase process for a nominal total of €110 million. The bonds acquired will be cancelled once the repurchase is settled, closed at a discount of 18%, equivalent to a final price of 90.5 million euros, which will be paid with the cash of the socimi specialised in the retail segment, as reported by the company on Monday.
After this, the company's liquidity will remain above 100 million euros. The debt reduction will have a positive impact of around 20 million euros on the 2023 income statement.
Once the buyback is completed, Lar España will maintain its two senior unsecured green senior bond issues on the Euro MTF Market of the Luxembourg Stock Exchange, now totalling €590 million, which represent almost all of the socimi's debt.
Specifically, the first issue amortises 98 million euros and has a value of 302 million euros, matures in 2026 and has an annual coupon of 1.75% at a fixed rate. The second issue, on the other hand, amortises EUR 12 million and has a value of EUR 288 million, maturing in November 2028 and an annual coupon of 1.84% at a fixed rate.
After the redemption, Lar España has reduced its indebtedness from 38.9% to 37.6% of the valuation of its assets.
Jon Armentia, corporate director and CFO of Lar España, explained that the buyback allows the company to optimise the use of its resources, reduce corporate leverage and improve the net value of its assets.
"The high liquidity we decided to preserve during the pandemic has now allowed us to buy back part of the green bonds up to a nominal 110 million euros while maintaining a still high liquidity cushion," said Armentia. "This move will allow us to be more financially agile, while remaining in a position to reinforce our leading role as the retail market picks up in 2023," he concluded.
