Aroundtown SA Launches Successful Perpetual Notes Exchange and Tender Offer

Aroundtown SA revealed the positive outcome of its voluntary exchange and tender offers related to several series of perpetual notes, both from Aroundtown and its subsidiary Grand City Properties S.A. Resulting in approximately €1.8 billion of existing notes being tendered, this move aims to support the company's credit metrics and funds from operations (FFO).

Through this strategic financial structuring, Aroundtown will release approximately €1.6 billion in new perpetual notes across three series. Additionally, it will repurchase €136 million worth of perpetual notes via the tender offer. The extensive participation underscores investor confidence and effectively enhances the group's portfolio management, paving the way for a future reduction in coupon payments on these notes. Such financial recalibration directly benefits Aroundtown's FFO, augmenting its operational liquidity and investment capacity.

The company emphasizes that this adjustment will not affect its equity recognition under IFRS and bond covenants, maintaining the full equity status of perpetual notes, including those not involved in the exchange. This operation aligns with Aroundtown's broader strategy to optimize its credit assessment under S&P's methodology, marking a significant step in fortifying its financial standing and operational efficiency.