Business
New Funding and Equity Raising
New Funding and Equity Raising.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 6667K Sirius Real Estate Limited 01 August 2013 \n \n\n \n \nSirius Real Estate Limited\n \nNew funding and Equity Raising\n \n \n \nSirius Real Estate ('SRE' or 'the Company') is pleased to announce that it has conditionally raised long term financing of €52 million via a secured bond issue and is conditionally raising €6.5 million via a shareholder subscription and placement (the 'Equity Raising').\n \nNew funding\n \nFour of the Company's subsidiaries have received commitments from investors to raise €52 million via a secured bond agreement ('Bond'), which is conditional only on admission to the London Stock Exchange's AIM market of the shares to be issued pursuant to the Equity Raising (the 'Admission'). The Bond is secured against three assets which currently form part of the €206.8 million facility with Berlin Hannoversche Hypothekenbank AG ('BerlinHyp').\n \nAs part of this transaction, the Company will repay BerlinHyp €56 million upon completion and provide a guarantee to repay a further €4m by 31 October 2013. On this basis BerlinHyp have agreed to release these three assets, which will initially reduce the BerlinHyp loan to €150.8 million and to €145.4 million after payment of the further €4 million and the normal amortisation due in September.\n \nThe Bond is split into a 10 year senior tranche of €45 million with a fixed interest rate of 4%, and no amortisation, as well as a 7 year junior tranche of €7 million which has a fixed interest rate of 6%, and is fully amortised over the term of the facility. The Bond is secured on three assets with a combined DTZ valuation at 31 March 2013 of €76.8m.\n \nSRE has decided to subscribe initially for €4 million of the more expensive junior debt itself while retaining the flexibility to sell it on to investors in the future, if required. The total arrangement cost (including lender's legals, ratings, valuations and paying agents) for completing the Bond issue is €2,080,000 representing 4% of the funds raised and will be amortised over the term of the facility. \n \nThis bond issue represents the first step in refinancing the BerlinHyp debt facility which expires in March 2014. The Company is in advanced discussions with BerlinHyp and three other lenders to refinance the remainde...