Leading global law firm Baker McKenzie advised a syndicate of seven initial purchasers on the €300 million 5.25% senior secured high yield bond issuance by Vía Célere Desarrollos Inmobiliarios, S.A. ("Vía Célere"), the leading developer of residential homes in Spain based on units delivered, as of December 31, 2020. This was the first green bond ever issued by a residential developer in the Euro market. Baker McKenzie concurrently advised the lender syndicate in Vía Célere's €30 million senior secured revolving credit agreement which was entered into concurrently with the offering.
J.P. Morgan and Deutsche Bank acted as Global Coordinators and Bookrunners, Credit Suisse, Santander, CaixaBank, BBVA and Banco Sabadell acted as Passive Bookrunners and J.P. Morgan acted as Green Structuring Agent in connection with the transaction.
J.P. Morgan AG, Deutsche Bank Aktiengesellschaft, Banco Santander S.A., Banco Bilbao Vizcaya Argentaria, S.A. and Credit Suisse (Deutschland) Aktiengesellschaft acted as mandated lead arrangers and lenders under the €30 million Senior Secured Revolving Credit Facility.
Baker McKenzie New York-qualified London-based partner, Haden Henderson said, “It’s been a pleasure to work with Vía Célere, the initial purchasers and the lenders on such a high profile transaction. Providing advice to the initial purchasers and lenders on New York, English and Spanish law across this particular financing plays precisely to the strength of our EMEA leveraged finance practice and our expertise in the real-estate sector and sustainable finance. It was also great to be involved in a number of firsts with this transaction - particularly the first euro-denominated green bond issuance by a residential developer.”
Baker McKenzie Spanish-qualified Madrid-based partner, Rossanna D'Onza said of the deal, “this is a landmark transaction for the European residential development sector, opening up a new financing path to be followed by other Spanish residential developers."
The Baker McKenzie team was led by London-based partners Haden Henderson and Nick O'Grady, and Madrid-based partners Rossanna D'Onza and Enrique Carretero, supported by London-based associates Benjamin Bierwirth, Nick Cusack, Andrew J Brown, Matthew Mazenier, Lola Oni and Nicholas Parker, Madrid-based associates Carlos Martin, Marina Martinez, Modesto Puerta, Ines Colas and Alberto Aires, and London-based trainees Abigail Saffron, Ross Gray and Chloe Potter. The team was supported by teams from the Firm’s offices in the US (partners Kai Kramer and Patricia McDonald and associate Patrick Renckly).
The transaction launched on March 15th, priced on March 18th and closing March 25th, 2021.
The gross proceeds from the Offering were €300.0 million. The gross proceeds from the Offering were used for general corporate purposes, including (a) for the repayment of certain existing debt, (b) fund cash on balance sheet and (c) to pay fees, commissions and expenses incurred in connection with the transactions. An amount equal to the net proceeds from the Offering will be used to finance or re-finance, in whole or in part, Eligible Green Projects which meet specified criteria.