Aroundtown SA Announces Completion of Multi-Currency Exchange and Tender Offers

Aroundtown SA revealed it successfully completed exchange and tender offers for its perpetual notes in GBP and USD, accruing a combined volume of €2.8 billion, inclusive of prior Euro transactions. This strategic financial maneuver involved an average acceptance rate of 90% from existing perpetual note holders, leading to the issue of approximately USD 494 million and GBP 345 million in new perpetual notes.

The achievement is part of a broader effort by Aroundtown, in conjunction with Grand City Properties S.A., to restructure its financial debts by offering exchanges on all perpetual notes not called in 2023 and 2024. This initiative aims to optimize the group’s credit standing through improved credit metrics under Standard & Poor’s methodology, while sustaining the recognition of these notes as 100% equity under IFRS and other bond covenants.

As a result of these financial activities, Aroundtown anticipates a long-term reduction in coupon payments for these perpetual notes, thus enhancing its Funds from Operations (FFO). This aligns with the group’s strategic financial planning and credit management approach, reinforcing its financial stability and market confidence.