Aroundtown SA Issues €500 Million Perpetual Notes and Initiates Tender Offer

Aroundtown SA has successfully issued €500 million in benchmark perpetual notes with a 5.25% coupon rate. The issuance garnered strong investor interest, with demand exceeding five times the available amount. The notes qualify as 100% equity under IFRS and are projected to receive a BB+ rating from S&P, with 50% equity content according to S&P's criteria.

Alongside this issuance, the company has launched a tender offer to repurchase existing perpetual notes with higher coupon rates, aiming to lower the overall balance of such notes. This strategy seeks to reduce the average coupon rate, potentially decrease the total notional amount, and foster significant growth in Funds From Operations (FFO). The tender offer, targeting €2.5 billion in nominal value, will close on October 30.