Demire, a German real estate company, issued €600m of unsecured senior notes on Monday, reducing its average financing costs by 90bp. Investors raised some concerns over the deteriorating German economy and big private equity sponsor Apollo but they lapped up the issue nonetheless.
The company is using the proceeds of the bond to refinance its outstanding €367m of 2022 notes carrying a 2.875% coupon. Demire will also repay €142m of 4% 2022 promissory notes. The rest will be spent on general corporate purposes.
Michael Tegeder, head of investor relations and