French REIT Gecina has successfully placed a bond issue in three tranches for a total amount of €1.5 bn to part-fund its friendly takeover of peer Eurosic.
The bond issues, with an average coupon of 1.3% and an average maturity of ten years, are intended to refinance part of the €2.5 bn bridge financing set up for the business combination, with the remaining balance to be refinanced through a capital increase to the tune of €1 bn.
With strong demand totaling around €5.5 bn, the three bond issues were nearly four times oversubscribed by investors, according to Gecina.
The takeover of Eurosic will enable Gecina to become Europe's fourth largest real estate group with around €19.3 bn of assets. It will also make the group Europe's biggest listed office player.
