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DGAP-News: K-Bonds AG: Successful placement of the K-Bond 4 loan note with a total volume of 66 million Euro

June 3, 2014

DGAP-News: K-Bonds AG / Key word(s): Miscellaneous K-Bonds AG: Successful placement of the K-Bond 4 loan note with a total volume of 66 million Euro03.06.2014 / 09:02 --------------------------------------------------------------------- Frankfurt, 28 May 2014K-Bonds AG successfully arranged and placed the latest mortgage backed loan note which has been denominated K-Bond 4 (Project name: K-Bond XIX - Car City). The K-Bond XIX loan note with a total volume of 66 million Euros is divided into two tranches: a senior secured tranche of 47 million Euro with a 4 percent yield, and a junior secured tranche of 19 million Euro and a 8.15 percent yield. Tranche A will be repaid in full after its term of ten years. Tranche B is amortised by 9 per cent each year with a term of 7.5 years. Macquarie Lending, part of Macquarie Corporate Finance and Asset Group, responsible for the operative lending and leasing business of Macquarie Group Limited emerged as the key investor of the loan note's junior secured tranche B. The new K-Bond 4 loan note's borrowers are the property owning companies, Dazzle Wolfsburg GmbH und Dazzle Zweite Wolfsburg GmbH, held by Dazzle Capital Holdings Limited, located at the Isle of Man, UK. Dazzle was founded by Hok Lai Chan in 2005. The company specialises in the acquisition of commercial and industrial real estate in Germany. Dazzle Holdings Ltd. is continuously looking for investment properties extending its real estate holdings. Due to a distinctly increased demand from the investors the loan note's issuance volume was increased from the initial 63.5 million Euro to the final number of 66 million Euro when the order book closed on 22 May 2014. The direct interaction with the investors, the conservative evaluation of the loan note's underlying real estate portfolio altogether with flexible contract agreements of the K-Bond loan notes facilitated the upgrade in terms of the loan note's total volume. In April 2014, tranche A received an Investment Grade A- rating from Euler Hermes Rating Deutschland GmbH. The current K-Bond 4 loan note is collateralised with land charges on the loan borrower's properties, assignment of claims, and pledge of the accounts. The portfolio consists of 6 commercial properties with a total rental space of von 79,757 square metres in the city of Wolfsburg, the global headquarters for Volkswagen AG, being the properties' anchor tenant. The remaining tenants are Volkswagen affiliated entities and worldwide recognised and known automotive suppliers. The loan's underlying portfolio was valued at 87.29 million Euro by Winters & Hirsch, an independent real estate valuer. The senior secured tranche offers an LTV (loan-to-value) ratio of 53.8 per cent of the market value. Altogether with the junior secured tranche the loan note's overall LTV ratio is 75.61 per cent of the assessed market value. The annual net rental income of the under underlying assets amounts to 6.9 million Euro resulting in a debt coverage ratio of 225 per cent and rising. RATING These positive features resulted in Euler Hermes rating the loan note's senior secured tranche with a volume of 48 million Euros with the Investment Grade A-. Specifically, the rating was founded on the loan note's sustainable cash flows on the basis of anchor tenants with strong financial standings and a senior collateralisation with the underlying land charges. For an overview over the tenant structure please visit http://www.k-bonds.com/fileadmin/media/user_upload/KBond4_E.pdf. Together with its preceding placement K-Bonds AG has successfully arranged and placed loan notes with an overall volume of 106 million Euros in the first five months of 2014. To this day, there are residential and commercial real estate portfolios in the current pipeline of K-Bonds AG within a mid three-digit-million Euro range. "Due to the high offer of unsecured bonds on the German finance market institutional investors prefer the K-Bond loan notes due to its collateralisation structure and compliance to SGB IV and the Investment Ordinance (AnlVO) Section 2, nos. 1 and 4", K-Bonds' CEO, Dr. Hans-GÜnther Nordhues commented the recent successful placement of the K-Bond 4 loan note. For further questions, visit our website or contact us under: K-Bonds AG Barckhausstraße 1 60325 Frankfurt am Main T: +49 (0) 69 / 26 49 10 500 F: +49 (0) 69 / 26 49 10 511 W: www.k-bonds.com E: info@k-bonds.com Blog: www.essenceoffinance.com End of financial news --------------------------------------------------------------------- 03.06.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 271806 03.06.2014


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Source: DGAP Corporate News


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