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Terra Firma strikes refinancing deal for Deutsche Annington

11 Jul 2012

Terra Firma has struck a refinancing deal with bondholders that will see the firm inject €504m of fresh equity into German property business Deutsche Annington, a move that will help it towards a planned initial public offering.

Deutsch Annington, which is being advised by Blackstone, has agreed a restructuring of its finance vehicle which includes a fresh equity injection from Terra Firma, half of which is reported to be in the form of loan forgiveness.

The company will refinance its German Residential Asset Note Distributor (GRAND) CMBS, which initially issued €5.8bn of notes six years ago.

The deal will see GRAND’s outstanding debt reduced to €3.8bn euros, which will be refinanced over an extended five-year period after receiving approval from ad-hoc bondholders representing 32 per cent of the notes.

These comprise BayernLB, ING Investment Management, JP Morgan, Landesbank Baden-Wuerttemberg, PIMCO and Standard Life Investments, who are being advised by Rothschild.

The company will repay €1bn in the first year, €700m in the second year, €650m in each of the third and fourth years and the remaining amount in the fifth year.

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