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Since 1990 Mirabaud has offered a wide range of services for public and private companies. Its services include equity research, capital markets, corporate advisory as well as institutional brokerage.
Quabit Inmobiliaria
Case study
Quabit Inmobiliaria
Mirabaud advised Quabit Inmobiliaria, in the first High Yield Corporate Bond issued by a Real Estate developer. Mirabaud acted as Structurer and Joint Bookrunner for the transaction.
About Quabit Inmobiliaria
- Quabit (today Neinor Homes) is a Spanish listed Real Estate developer with more than 25 years of experience.
- Quabit’s Management Team has a clear industrial focus, strategically oriented to the residential Real Estate development in regions with strong outlook, offering an attractive product in terms of quality and price. Quabit is aiming to deliver +8,000 homes in its 5 years strategic plan (2018-2022).
Transaction overview
- The aim of the transaction was to raise financing for the acquisition of a finalist and pre-finalist land portfolio in order to accelerate the Business Plan, as well as being the first corporate issue of the national residential Real Estate developer industry and the first of Quabit Inmobiliaria
- €20m was issued with 4 years maturity, non-rated and a fixed coupon of 8.25% payable annually over the nominal value issued
- Double guarantee structure:
- corporate guarantee and
- collateral security on the assets acquired with the €20m (pledge on the Propco shares and on the bank accounts as well as promissory mortgage on the assets portfolio in case of event of default)
- The issue was placed among national and international institutional investors and listed in the Frankfurt Stock Exchange (Freiverkehr)
We are extremely proud of having structured and placed such an innovative high yield bond under very attractive conditions for our client, Quabit. Market financing cost for land acquisitions when we closed the transaction was around 15%-18% for mid-market companies, and our bond had a coupon of 8.25%, less than half. We are specialists in designing bespoke financing solutions for our clients even under complex market conditions.
Mirabaud contribution and added value
- Mirabaud acted as Structurer and Lead Bookrunner for the transaction. The Mirabaud teamdesigned an innovative structure that allowed Quabit Inmobiliaria to finance (with a double guarantee structure of corporate and collateral security), the acquisition of land with very attractive terms (costs and conditions) (the current financing cost for land acquisition is at similar levels to Quabit’s cost of equity)
- Mirabaud’s Fixed Income Team identified an institutional investor base with an interest in participating in the High Yield Corporate Bond, geared towards investors with a buy&hold strategy andknowledge of the Spanish residential Real Estate industry. Additionally, Mirabaud’s Private Banking Team was actively involved in the placement, offering the opportunity to its client base. Finally, the Fixed Income Operations team managed the Transaction fronting and settlement
- Coordination with Mirabaud’s analysis department in the investor education, sharing its views on the Real Estate cycle as well as on Quabit Inmobiliaria
- This transaction reinforces Mirabaud as the reference advisor for middle-market companies in the issuance of High Yield Corporate Bonds among national and international institutional investors
Key data
| Issuer | Quabit Finance, S.A. (100% subsidiary of Quabit Inmobiliaria, S.A.) |
| Industry | Real Estate |
| Type of issue | High Yield Corporate Bond |
| Use of funds | Acquisition, development and promotion of land |
| Governing law | Spanish law |
| Incurrence Covenants | Loan to Value and Net Financial Debt(1) / EBITDA |
| Size | € 20,000,000 |
| Coupon | 8.25% - 99% par |
| Maturity | 4 years (100% bullet) |
| Rank | Senior secured |
| Market | Frankfurt Stock Exchange - Non regulated Market (Freiverkehr) |
| Mirabaud Role | Structurer and Joint Bookrunner (in addition to other value added services such as Private Placement and Settlement Bank) |
Case Study
Case Leader
Corporate finance
Enrique AGUADO
Head of Corporate Finance & Capital Markets