French investment firm Tikehau Investment Management was sole arranger on a €28 million bond issue for real estate company European Homes.
The bond was part of a €40 million financing package for the borrower. French banks Société Générale, BNP Paribas and SocFim provided an additional €12 million to paying off the company’s senior debt.
The €28 million bond is targeted at paying off the real estate company’s existing senior debt and was solely arranged by Tikehau. PDI understands that the coupon on the bond is 8 percent and will mature in 2022.
The residential house builder has constructed 20,000 properties across multiple locations in France. In 2015, its turnover was €212 million and the firm builds around 1,400 properties every year, according to a statement from the asset manager.
Tikehau IM refinanced European Homes’ senior debt though the company had paid back a large portion of its outstanding credit following strong performance in 2010. The company’s new debt replaces a more expensive facility, PDI understands.
The European Homes transaction is the ninth deal in the firm’s third direct lending fund. The fund is set to close in the fourth quarter of 2016, although the asset manager expects it will reach its €750 million target earlier.
Last month, Tikehau lent €20 million, as part of a wider €220 million loan, to the senior management of Delpharim to acquire full ownership of the company.
European Homes “demonstrated the resilience of its business model” during the most recent real estate crisis, said Tikehau in a statement.
Tikehau IM has more than €7.4 billion in assets under management through its asset management subsidiary, Tikehau IM, its listed minority equity investment company, Salvepar, and its long-term investment company, Tikehau Capital Partners. The firm has offices in Paris, Brussels, London and Singapore.