City Home Finance establishes a unique secured bond programme
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Allen & Overy announced today that it has advised WOOD & Company Financial Services, a.s., as manager, in connection with the establishment of a 10-year secured bond programme of City Home Finance III, s.r.o. with a value of up to 1 billion Czech crowns and in connection with the first bond issue under the bond programme with a total expected nominal value of up to 400 million Czech crowns (with the possibility of increasing up to 600 million Czech crowns).
The bond programme is secured by pledges and guarantees with a unique mechanism embedded in the joint terms and conditions, which ensures that only a joint meeting of bondholders of all issues issued under the bond programme can decide on the common interests of the bondholders of multiple issues issued under the programme, including matters related to security. This ensures the protection of the interests of individual bondholders in the case of more than one issue under the programme without the need to resolve the mutual relations of the bondholders in an intercreditor agreement.
All bonds issued under the programme are secured by a pledge of 100% of the shares in the issuer, pledges of the shares in the guarantor, and a guarantee issued by City Home Invest III, a.s., to which notarial deeds with permission to direct enforceability will be made in relation to each bond issue. The issuer belongs to the SATPO Group, which specialises in premium residential development projects mainly in Prague.
The A&O team in Prague consisted of partner Petr Vybíral, who heads A&O's banking and capital markets practice in the Czech Republic, senior associate Tomáš Kafka, and associate David Bujgl.
“Our goal was to create and offer investors a bond programme that would be attractive not only in terms of yield, but especially in terms of the best possible risk treatment. We have succeeded in doing this again in cooperation with the Allen & Overy team,” said Peter Turner, Head of Investment Banking at WOOD & Company.
Petr Vybíral commented on the transaction: “We are very pleased to have been able to advise on another successful bond issue of a SATPO Group company. We really appreciate our long-term cooperation with both WOOD & Co and SATPO Group and look forward to further joint projects.”