€42 million bond issue from Pendergardens

Pendergardens Developments plc have issued a formal notice for two bond issues worth €42 million.

The bond issues are being offered at coupons of 5.5% (€15 million) for maturity in 2020, and €27 million bonds at 6% for maturity in 2022.

The Bonds will be secured by a first-ranking general hypothec over all the present and future assets of the Pendergardens development, and earmarked for the construction of Block 16, Block 17 and Towers I & II.

The net proceeds from this bond issue, estimated at €41.25 million after issuance costs, will be principally used to finance the redemption of the outstanding unlisted €12 million notes which will be redeemed in 2014, as well as acquire the land over which the two towers and Block 17 will be developed and to settle €8.95 million owed on works already executed on the land; and finance Block 16, Towers I & II and Block 17 (circa €20 million).

The remaining €26.1 million funding required to complete Phase II is expected to be generated from net sales of the residential and commercial units within the same project.