Aroundtown SA Issues €850 Million Bond and Launches Buyback Tender

Aroundtown SA has successfully issued an €850 million senior unsecured bond with a 5.25-year maturity. The bond, set to mature in January 2031, carries a 3.25% coupon rate. This rate is lower than previous issuances, signaling a decline in the company's marginal cost of debt.

The issuance received strong investor interest, with the orderbook being more than three times oversubscribed. Concurrently, Aroundtown initiated a tender offer targeting €1.6 billion of outstanding bonds. This step is part of its strategy to manage upcoming maturities and reduce interest expenses.

The tender is aimed at bonds with shorter maturities and higher coupons. Both measures indicate the company's commitment to optimizing its debt profile, enhancing its credit strength, and reducing financial liabilities.