This will cancel a 500 million euro bond issuance which would mature in 2023 and it will also redeem part of another 600 million euro bond issuance which would mature in 2024.
Demand for the 500 million euro bond issuance with 0.75% yield to maturity, was three times higher than the offer, due to the low rates and the investment appetite. These funds will be used in this repurchase of bonds.
The company had already executed this same plan last October, when it issued 500 million euro in new bonds destined to, among other ends, rebuy 300 million euro in bonds. It repurchased 193.8 million euro during the first operation and 107.6 million euro during the second one. The 500 million euro bond’s pending amount was, until now, 306.1 million euro and that of the 600 million euro bond is 493.3 million euro. The company will now repurchase all the outstanding bonds from the first operation and 69 million euro from the second, totalling a 375.1 million euro repurchase of bonds.
At the end of March, the rental office company had a 4.315 million euro net debt, 93% constituted by bond emissions and the rest by loans to financial entities, and a liquidity of 2.406 million euro between cash and unused lines of credit. 83% of the group’s debt matures in 2023 and 64% in 2025, of which 2.945 million euro correspond to Colonial and 1.736 million euro to its French subsidiary Société Foncire Lyonnaise (SFL).
Colonial maintains a credit rating of «BBB+», according to S&P Global, and of «Baa2» by Moody's, both with a «stable» prospect, which places the REIT as the real estate company with «the best historical rating, within this sector, in Spain and one of the best in Europe».