EQS-News

Aroundtown SA announces successful exchange and tender offer supporting credit metrics and FFO. Issuing new benchmark perpetual notes.

EQS-News: Aroundtown SA / Key word(s): Corporate Action/Tender Offer Aroundtown SA announces successful exchange and tender offer supporting credit metrics and FFO. Issuing new benchmark perpetual notes. 10.04.2024 / 12:00 CET/CEST The issuer is solely responsible for the content of this announcement. THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

AROUNDTOWN ANNOUNCES SUCCESSFUL EXCHANGE AND TENDER OFFER SUPPORTING CREDIT METRICS AND FFO. ISSUING NEW BENCHMARK PERPETUAL NOTES.

10 April 2024

Aroundtown (“the Company” or “AT”), announces the successful results of voluntary exchange and tender offers of four series of Aroundtown euro denominated perpetual notes and two series of its subsidiary Grand City Properties S.A. (“GCP”, together with AT the “Group”) euro denominated perpetual notes (together, the “Offers”).

74% or ca. €1.8 billion aggregate nominal amount of existing perpetual notes were submitted into the Offers and accepted by the Group. As a result, the Group will issue ca. €1.6 billion of new perpetual notes across three different series and simultaneously repurchase €136 million of perpetual notes via the tender offer (see detailed breakdown further below).

The result of the Offers supports the Group’s credit metrics under S&P’s credit rating methodology as the new perpetual notes regain or extend the 50% equity content under S&P methodology. Under IFRS and for all bond covenants, all perpetual notes, including the existing perpetual notes which were not submitted in the Offers, will continue to be recognised as 100% equity. As a result of the Offers, the Group will see a long-term reduction in perpetual note coupon payments going forward, which is accretive to the Group’s FFO.