The board of directors of Neinor Homes has approved the issue of 300 million euros in bonds maturing in 2030, with the aim of refinancing part of its debt and financing its activity in the real estate sector.
Specifically, the developer intends to use 175 million euros to fully repay all outstanding amounts under the senior facility agreement signed in March 2023, as reported to the Spanish Securities and Exchange Commission (CNMV).
The remaining €125 million will be used for general corporate purposes, including the acquisition of land, additional co-investments or shareholder remuneration, as well as to pay fees, commissions and expenses in connection with the issue. Company sources explain that this transaction will also allow the company to extend the life of its debt from about two years to five and a half years.
Interest on the bonds will accrue from the date of issue and will be payable semi-annually. The final amount of the issue and the interest rate and issue price of the bonds will be determined at the time of pricing the issue, based on market conditions. The company will also apply for the bonds to be admitted to trading on the Global Exchange Market of the Irish Stock Exchange (Euronext Dublin).
Neinor Homes closed the first half of 2024 with a cash position of €224 million and net debt of €210 million, little changed from December 2023.
In the last month Neinor has announced several investments and other operations. In Cordoba, the developer will invest 75 million euros to build 300 homes. The company has also committed to Malaga with its 168-home Creative Homes Bulevar project in the Cortijo Merino neighbourhood, in which it has invested 125 million euros. The company has also signed an agreement with Merak IMS, a company controlled by Bain Capital funds, to acquire 10% of the share capital of Promociones Habitat for approximately 31 million euros.
Neinor Homes launches a €300M senior bond issue to refinance debt
