Aroundtown SA Successfully Executes Exchange and Tender Offer, Enhancing Credit Metrics and FFO

On April 10, 2024, Aroundtown SA, along with its subsidiary Grand City Properties S.A., announced the completion of a successful voluntary exchange and tender offers of various perpetual notes, positively influencing the company's credit metrics and Funds From Operations (FFO). The operation involved a total submission and acceptance of approximately €1.8 billion in aggregate nominal amount of existing perpetual notes, leading to the issuance of around €1.6 billion in new perpetual notes across three different series. Additionally, the company repurchased €136 million of perpetual notes through the tender offer.

This strategic financial maneuver is set to bolster Aroundtown's credit standing under S&P's methodology by maintaining or expanding the equity content of the new perpetual notes to 50%. Furthermore, for IFRS and all bond covenant purposes, the perpetual notes will continue to be recognized as 100% equity. As a direct consequence of the offers, Aroundtown anticipates a long-lasting reduction in coupon payments on perpetual notes, proving to be beneficial for the Group's FFO.