Aroundtown SA Announces Exchange Offer for Perpetual Notes Holders with Added Tender Option

Aroundtown SA, a Luxembourg-based real estate company, has officially announced the launch of an exchange and tender offer targeted at the holders of four of its Euro-denominated perpetual notes. This strategic financial action is designed to allow perpetual notes holders to exchange their notes for new ones under specific terms, with an additional option to tender 15% of the exchanged value for cash.

The offer pertains to perpetual notes bearing ISIN codes XS1508392625, XS2055106210, XS1752984440, and XS2027946610. Participants in this exchange program can swap their existing notes for new subordinated perpetual notes, which come with either a 7.125% or 5% coupon rate depending on the series, plus a cash incentive. A distinctive feature of this offer is the option for a 15% cash redemption post-exchange. The initiative aims at a minimum issue size of €200 million for each new note series.

Both new note series are anticipated to be rated BBB- by S&P Global Ratings Europe Limited, marking them as investment-grade securities. This offer opens on 2 April 2024 and is set to conclude on 9 April 2024, providing a narrow window for note holders to participate. Furthermore, the new notes will be guaranteed by Aroundtown SA and listed on the Luxembourg Stock Exchange.

This move aligns with Aroundtown’s goal to optimize its capital structure and maintain equity content in accordance with S&P's rating methodology. Note holders are advised that the offer is conditional upon specific terms laid out in the Exchange and Tender Offer Memorandum.