Grand City Properties S.A. Introduces Exchange Offer for Perpetual Note Holders

On 2 April 2024, Grand City Properties S.A. announced the launch of a voluntary exchange and tender offer aimed at holders of its two outstanding perpetual notes denominated in Euros with the ISIN codes XS1491364953 and XS1811181566. This strategic financial maneuver offers participants the opportunity to swap their existing notes for new perpetual notes coupled with a cash incentive, and a 15% cash redemption for their exchanged notes.

The exchange targets perpetual notes carrying current coupons of 6.332% and 5.901%, respectively, offering a novel issuance of undated subordinated notes with a 6.125% coupon and a six-year term until the first reset event. The initiative, which requires a minimum new issue size of EUR 150,000,000, is designed to strengthen the company's equity under S&P rating criteria by addressing notes not redeemed at their first call dates. Grand City Properties has set the offer period from 2 April to 9 April 2024, contingent on specific terms outlined in an upcoming Exchange and Tender Offer Memorandum.

The new notes, guaranteed by Grand City Properties and issued by its subsidiary Grand City Properties Finance S.à r.l., will enjoy a pari passu ranking with other subordinated notes issued or guaranteed by the company. These will be listed on the Luxembourg Stock Exchange for trading, further expanding the company’s financial instruments accessible to investors.