Cologne/Munich, 10 March 2021 – In early March, Homann Holzwerkstoffe GmbH, a leading European supplier of thin, refined wooden fiberboards for the furniture, doors and coatings industries, refinanced its corporate Bond 2017/2022 early by issuing a new bond with a total volume of EUR 65 million. IR.on AG supported the transaction as investor relations and communications consultant.
Since its capital market debut in 2012, Homann Holzwerkstoffe GmbH has issued two corporate bonds and established itself as an attractive investment and reliable capital market partner. The aim of the latest transaction was to refinance the second Bond 2017/2022 with a volume of EUR 60 million early, while at the same time benefiting from the continued low interest rates to further reduce the company’s financing costs. The third Homann Holzwerkstoffe bond with a target volume of EUR 60 million and a term of 5.5 years until September 2026 was therefore offered within an interest rate range of 4.50% to 5.00% p.a., while the old bond had a coupon of 5.25%.
The task of IR.on’s communication was to highlight the issuer’s positive operating performance since the issue of the first bond and to highlight the sustainable business model of the market leader for thin, refined wooden fiberboards. Besides strategic communications, IR.on AG’s consultants were also responsible for press relations, the corporate website, online marketing, the webcast with institutional investors as well as the dialog with the financial press, bond media and private investors. In addition, a social media campaign was used for the first time to market the bond.
As a result, Homann Holzwerkstoffe GmbH’s offer, consisting of an exchange offer for the holders of the Bond 2017/2022 including a multiple purchase option, a public offer in Luxembourg and Germany and a private placement in selected European countries, met with great interest across the board. This allowed the coupon to be set at the lower end of the range at 4.50%, i.e. 75 basis points below the coupon of the old bond. As a result, the interest burden has been reduced by around EUR 2.5 million over the term of the bond. The exchange ratio reached a high 47% and the volume was increased by EUR 5 million to EUR 65 million.
Fritz Homann, Managing Director of Homann Holzwerkstoffe GmbH, is satisfied with the result: “We were able to successfully place our third corporate bond in a challenging market environment. With the new bond, we have further strengthened our solid financing structure and will remain a strong partner to both our customers and our investors going forward.”