Aroundtown S.A. Issues €500 Million Perpetual Notes and Initiates Tender Offer

Aroundtown S.A. has successfully issued €500 million in perpetual notes with a 5.25% coupon rate. This issuance garnered significant interest, as the orderbook was five times oversubscribed. The perpetual notes are classified as 100% equity under IFRS and are anticipated to receive a BB+ rating from S&P. This reflects 50% equity content in S&P's methodology.

Concurrently, Aroundtown has launched a tender offer aiming to replace higher-coupon perpetual notes and rebalance its notes stack. The objective is to reduce the average coupon rate and decrease the total notional amount, enhancing FFO growth with a stable financial footing. The tender, which started on October 23 and ends on October 30, targets €2.5 billion of outstanding notes.