Real Estate Company RESIDOMO plans to refinance its capital structure with a new bond and revolving credit facility to reduce financing costs
RESIDOMO owns and manages a portfolio of income-producing residential assets worth about €1.1 billion, in the Moravia-Silesia region of the Czech Republic. RESIDOMO plans to refinance its capital structure with a new bond and revolving credit facility to reduce financing costs, extend maturity, and benefit from higher operational flexibility. We are assigning our preliminary 'BB-' ratings to RESIDOMO and the proposed notes. The stable outlook reflects our expectation of positive revenue growth through rental increases and higher occupancy, stronger EBITDA interest coverage, and debt to debt plus equity reducing to about 70%. RESIDOMO has a relatively small and geographically concentrated residential investment property portfolio in the Moravia-Silesia region of Czech Republic, comprising 43,100 apartments of 2.6 million square meters (sqm) and 1,800 commercial units. The total appraised value of the apartments was Czech koruna (CZK) 28.4 billion (€1.1 billion