Accor Successfully Issues OCEANEs Due 2032 While Repurchasing Part of 2027 OCEANEs

Accor has announced a successful undertaking with its issuance of €380 million in bonds convertible into new or exchangeable for existing shares, termed as OCEANEs, due in 2032. This move is a part of Accor's strategic debt management. The proceeds are being utilized to repurchase €317 million of the 2027 OCEANEs, initially issued in December 2020.

The newly issued bonds, valued at €100,000 each, carry a fixed annual yield of 1.375%, starting in March 2027. They can potentially convert into new or exchangeable existing Accor shares, with a premium of 37.5% over the current share price. The bonds will mature in March 2032, subject to predefined conditions for early redemption.

The firm's actions have a summarized dilution potential of 2.58% if converted into new shares. Furthermore, a reduction in potential dilution from 3.21% to about 1.40% is expected due to the partial repurchase of 2027 OCEANEs.