Grand City Properties Announces Success in Financial Maneuvers to Support Credit and Financial Performance

Grand City Properties S.A. revealed the fruitful outcome of a voluntary exchange offer alongside a tender offer concerning its perpetual notes. This strategic move has facilitated the issuance of roughly €410 million in new perpetual notes, while simultaneously enabling the repurchase of €34 million in existing perpetual notes through a tender offer. A significant 82% of existing perpetual notes were submitted for these offers, embodying €449 million in aggregate nominal amount, all accepted by the company.

This financial restructuring is expected to bolster the company's credit metrics as assessed under Standard & Poor’s credit rating methodology by retaining the 50% equity content of the new notes. Additionally, in line with IFRS and bond covenants, all notes, inclusive of those not exchanged, will be treated entirely as equity. Grand City Properties anticipates this will contribute to a long-term decrease in coupon payments on perpetual notes, positively affecting Funds From Operations (FFO).

The newly issued perpetual notes carry a coupon of 6.125% and have their first call date set for January 2030. This announcement was communicated with a clear disclaimer that it does not constitute a securities offering in any jurisdiction where such an action would contravene local laws or regulations.