Renta 4 | The company has notified the National Securities Market Commission (CNMV) that it will issue senior secured fixed-rate bonds maturing in 2031 and senior secured variable-rate bonds maturing in 2032 for a total nominal amount of €1 billion. This refinancing is being carried out by taking advantage of the improvement in its debt rating by rating agencies at the end of July and the reduction in net debt thanks to the capital increases carried out in May and the IPO.
The funds obtained, together with existing cash, will be used to: a) repay the entire outstanding principal amount (approximately €386 million) of the senior secured bonds with a coupon of 10.375% and maturing in 2027 and to pay the redemption premium, together with the accrued and unpaid interest thereon, on 10 November 2025, b) repay the entire outstanding principal amount (approximately €620 million) of the senior secured bonds with a coupon of 4.500% maturing in 2027, together with the accrued and unpaid interest thereon, as of the date of issue of the Bonds, and c) pay the fees and expenses related to the offering of the Bonds.
Assessment: We view this news as positive because, although we do not yet know the terms of these new bonds, we believe that the reduction in debt mentioned above due to the IPO and the capital increase in May, together with the improvement in its debt rating by the rating agencies, should enable Cirsa to obtain better terms than those of the issues it is going to redeem, thereby reducing its financial expenses.
