Foncia sets call to present €650M secured and unsecured bond offering

Foncia Groupe is now out with the €650 million secured and unsecured high-yield portion of its bond and loan recapitalization ahead of a investor call at 9 a.m. U.K. time on March 16. Deutsche Bank (B&D) is left-lead bookrunner alongside fellow global coordinators and joint physical bookrunners BNP Paribas, Goldman Sachs and Natixis.

The bonds are split between a €400 million, seven-year (non-call three) offer of secured notes and a €250 million offer of eight-year (also non-call three) unsecured notes. There is a one-time change-of-control offer subject to a leverage test and a 10% redemption option at 103 on the secured notes only.

BofA Securities, Credit Agricole CIB, HSBC, ING, SMBC and UniCredit are joint bookrunners. Credit Suisse is a co-manager.

The deal is part of a €1.925 billion package that will refinance the firm's credit facilities and pay a €475 million shareholder dividend. Foncia launched a €1.275 billion term loan at a bank meeting on March 11 guided at E+350-375 with a 0% floor offered at 99.5.

Corporate ratings are affirmed at B/B/B2 on stable outlook from S&P Global Ratings and Fitch, and a negative outlook from Moody’s. Secured ratings are B/B2/B+ with recovery ratings of 3 from S&P Global Ratings and Fitch. Unsecured ratings are CCC+/CCC+/Caa1. Foncia Management is the secured borrower and Flamingo Lux II is the unsecured borrower.

Foncia is a French real estate services company, which is also active in Switzerland, Germany and Belgium. The firm was previously an all-loan name being bought out by Partners Group in 2016, in a €1.832 billion deal backed by an €828 million term loan maturing September 2023. Since then the firm has revisited its loans multiple times, including most recently via a €110 million, cov-lite fungible term loan add-on in July 2019, which was used to refinance the firm's second-lien loan.