Latest Tokyo Brief coverage on Sumitomo Forestry Co.,Ltd., tracking filings, financial news, and market signals from Japan.
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Sumitomo Forestry raised ¥243.5bn across three subordinated bond tranches maturing between 2061 and 2066, with coupons as high as 4.343% and full discretion to defer interest payments; the proceeds repay short-term debt taken out for its Tri Pointe Homes acquisition.
Sumitomo Forestry signed a ¥69bn and ¥37.5bn subordinated syndicated loan, maturing in 2062 and 2064, to repay borrowings from its completed Tri Pointe Homes acquisition, with R&I and JCR expected to treat half the raised amount as equity.
Consolidating US homebuilder Tri Pointe Homes lifted Sumitomo Forestry's half-year sales 17.5% to ¥1.26tn, but high American mortgage rates, buyer incentives and acquisition costs nearly halved net profit and pushed the equity ratio down to 30.5%.