Aroundtown SA Receives Buy Recommendation from First Berlin Equity Research

First Berlin Equity Research GmbH has reiterated its buy recommendation for Aroundtown SA, maintaining a target price of €3.40. Analyst Ellis Acklin highlighted this in a recent research update, following an evaluation of Aroundtown's financial maneuvers aimed at restructuring its debt portfolio. The company reported significant acceptance for its exchange and tender offers concerning various series of its perpetual notes, an initiative directed towards enhancing its S&P credit metrics.

Aroundtown's strategic financial activities involved offering to exchange and tender four series of its perpetual notes and two series of notes from its subsidiary, Grand City. The purpose behind these offers was to reclassify the notes' equity components as per S&P's guidelines, with around 74% of noteholders participating, representing a nominal value of nearly €1.8 billion. Moreover, Aroundtown plans to issue €1.6 billion in new perpetual notes and repurchase €136 million worth at the tender, aiming to improve its S&P ratings and save approximately €10 million in annual coupon payments from 2025. These savings are expected to positively affect the company's FFO 1 bottom line.