German residential company Deutsche Annington has proposed a refinancing of Europe’s largest securitisation – the €4.4bn Grand CMBS.
The company, which owns more than 150,000 homes and is controlled by Guy Hands’ Terra Firma private equity group, has proposed €504m of “equity support” in exchange for a five-year extension to pay down the remaining debt.
The proposal will reduce the outstanding securitised debt to €3.8bn and the LTV to 60%.
Around 37% of the investors who bought bonds secured by Deutsche Annington’s debt have agreed the proposal, and a wider bondholder vote will be undertaken on 5 October.
