{"id":51166,"date":"2023-11-28T15:30:34","date_gmt":"2023-11-28T14:30:34","guid":{"rendered":"https:\/\/www.gruppoigd.it\/?p=51166"},"modified":"2023-11-28T15:49:49","modified_gmt":"2023-11-28T14:49:49","slug":"igds-financial-profile-improves","status":"publish","type":"post","link":"https:\/\/www.gruppoigd.it\/en\/igds-financial-profile-improves\/","title":{"rendered":"IGD\u2019s financial profile improves"},"content":{"rendered":"

Thanks to the successful exchange and consent solicitation transaction, launched last 5 October in order to refinance the \u20ac400 million bond maturing in November 2024, IGD can now focus on optimizing operational and financial management. <\/strong><\/p>\n

On 14 November IGD completed a transaction which is key to strengthening its future financial sustainability and reducing its short-term risk profile.<\/p>\n

Thanks to the fact that almost 86% of the bondholders accepted the terms and conditions of the Offer, on 17 November the Company issued new a senior bond of approximately \u20ac310 million and paid roughly \u20ac30.4 million in cash to preexisting bondholders who had accepted the exchange offer by the early deadline of 13 October.<\/p>\n

 <\/p>\n\n\n\n
\n

Snapshot of the new issue<\/h4>\n

Bond characteristics:<\/strong> senior, non-subordinated and non-convertible<\/p>\n

Issue date: <\/strong>17 November 2023<\/p>\n

Expiration:<\/strong> 17 May 2027<\/p>\n

Coupon:\u00a0<\/strong>as from 28 November 2023 the New Notes will expire on 17 May 2027 at a fixed interest rate of:<\/p>\n

    \n
  • 5.500% per annum in relation to the first interest period which begins on 28 November 2023 and ends on 17 May 2024;<\/li>\n
  • 6.250% per annum in relation to the interest period which begins on 17 May 2024 and ends on 17 May 2025;<\/li>\n
  • 7.250% per annum in relation to the interest period which begins on 17 May 2025 and ends on 17 May 2026;<\/li>\n
  • 8.500% per annum in relation to the interest period which begins on 17 May 2026 and ends on 17 May 2027,<\/li>\n<\/ul>\n

    to be paid in each case annually in arrears.<\/p>\n

    Clause limiting the distribution of earnings:<\/strong> it is prohibited to distribute dividends in excess of the amount necessary to maintain the status as a real estate investment company or SIIQ<\/p>\n

    Repayment clause<\/strong>: priority repayment mandatory in the instance of an asset sale event<\/p>\n

    Listing<\/strong>: Global Exchange Market of Euronext Dublin; the Company also submitted an application to be traded on the Euronext Access Milan market<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    A market-friendly transaction which met investors\u2019 expectations<\/h4>\n

    The way in which the transaction that ended last 14 November was structured, as well as the relative terms and conditions, reflect the intent to respond to the credit capital markets\u2019 current expectations.<\/p>\n

    The high take-up rate of approximately 86% achieved by IGD proves that the rationale underlying the transaction was understood and appreciated. The positive feedback also demonstrates that the investors believe in the Company\u2019s strategy and are confident in the management\u2019s ability to continue to implement it, resulting in FFO capable of supporting the path for the future.<\/p>\n

    \u00a0<\/strong><\/p>\n

    The number 1 objective of this transaction? Maintain the \u201cinvestment grade\u201d rating of IGD\u2019s debt<\/h4>\n

    The push behind the early refinancing of the \u20ac400 million bond maturing in 2024 arises from the need to maintain the positive opinion of the Company\u2019s creditworthiness expressed by the rating agencies which view managing the risk of finding new financial resources well in advance as essential.<\/p>\n

    IGD would like to be able to take advantage of all the opportunities that might materialize on the market in the near future, including any windows that might open on the corporate bond market as rates decrease. Toward this end, if we want to maintain a competitive coupon on any new issues, having an investment grade rating is key.<\/p>\n

    Now that the short-term refinancing risk has been eliminated, IGD can now focus on finding the best solutions for the future.<\/p><\/blockquote>\n

    \u00a0<\/strong>No significant financial maturities before 2027<\/h4>\n

    Now that the hurdle of the \u20ac400 million bond maturing in November 2024 has been removed, over the next few years IGD can work on rescheduling debt as effectively as possible, as well as minimizing the cost.<\/p>\n

     <\/p>\n

    Disposals are still an important card that IGD has yet to play in the game to reduce LTV<\/h4>\n

    IGD\u2019s management team is working hard on providing the market with news on the disposal of assets currently in its portfolio as quickly as possible. The cash-in generated by the disposals, which hopefully will be completed in the new few months, will make is possible to lower the Loan-to-Value and limit the cost of debt.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Thanks to the successful exchange and consent solicitation transaction, launched last 5 October in order to refinance the \u20ac400 million bond maturing in November 2024, IGD can now focus on optimizing operational and financial management.<\/p>\n","protected":false},"author":5,"featured_media":51164,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[216],"tags":[],"class_list":["post-51166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-up-close"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/51166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/comments?post=51166"}],"version-history":[{"count":3,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/51166\/revisions"}],"predecessor-version":[{"id":51170,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/51166\/revisions\/51170"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/media\/51164"}],"wp:attachment":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/media?parent=51166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/categories?post=51166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/tags?post=51166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}