High demand also in the public phase reduced the annual shekel interest rate of the bonds to 4.99%, lower than the interest rate set at the institutional stage and stood at 5.1%
Fattal Europe, a bond company that owns 55 hotels in Europe and is wholly owned by Fattal Holdings, has successfully completed the public phase of the Series D (new series) bond issue. As part of the public phase, the company won demand in the amount of NIS 120 million – more than three times the amount it sought to raise.
Prior to the IPO, the company announced that it intends to raise bonds amounting to NIS 200 million, but in light of the high demand at the institutional stage, the company decided to increase the total fundraising volume (public tender) to NIS 250 million, subject to Midro rating approval. As stated, received.
Following the permit requests registered at the public stage, the bonds were set a lower annual shekel interest rate than the institutional stage and were set at 4.99% compared to an interest rate of 5.1% – a significantly lower interest rate than the maximum interest rate offered in the tender to 6%.
As part of the offering, the company offered investors bonds (Series D) secured by a first lien on 7 properties, with the total value of the collateral amounting to approximately EUR 104 million. In addition, the bonds carry a fixed shekel interest rate with a maturity of approximately 4.2 years, with the final maturity date of the bonds being in September 2026 and rated by the Midro rating company with an A2 rating under examination with negative consequences.
Meanwhile, last week, Fattal Europe reported the signing of a binding agreement for the sale and leaseback of the Leonardo Royal Berlin Hotel for NIS 230 million. The expected net cash flow for the company from this transaction is approximately NIS 76 million.
In addition, Fattal Europe is currently in advanced negotiations for the sale of 2 more hotels in Europe in the layout of sale and lease back – a hotel in the city of Munich Leonardo Hotel Munich City East and the other in the Netherlands Leonardo Royal Den Haag.
As of the end of the first quarter of 2020, Fattal Europe’s shareholders’ equity amounted to approximately EUR 392.5 million and the capital to equity ratio was approximately 40.4%.
The IPO was led by Orion Underwriting and IPOs.