France’s Foncia to sell €650 million secured and unsecured notes

By Paul A. Harris

Portland, Ore., March 16 – Foncia Groupe plans to sell €650 million of high-yield notes in two tranches, according to a London-based sellside source.

Foncia Management SAS is offering €400 million of seven-year senior secured notes (B2/B/B+).

Flamingo Lux II SCA is offering €250 million of eight-year senior unsecured notes (Caa1/CCC+/CCC+).

Left lead bookrunner Deutsche Bank will bill and deliver.

BNP Paribas, Deutsche Bank, Goldman Sachs and Natixis are joint global coordinators and physical bookrunners.

BofA, Credit Agricole CIB, HSBC, ING, SMBC and UniCredit are joint bookrunners.

Credit Suisse is the co-manager.

The notes in both tranches become callable after three years at par plus 50% of the respective coupons. The Foncia Management secured notes feature a special call provision allowing the issuer to redeem 10% of those notes annually at 103 during the non-call period.

The France-based real estate company plans to use the proceeds from the Rule 144A and Regulation S deal to repay bank debt and fund a €475 million shareholder dividend.

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