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LUXEMBOURG - German commercial real estate company Aroundtown SA has issued €500 million in benchmark perpetual notes with a 5.25% coupon, according to a company press release issued Thursday.
The issuance received strong investor interest with the orderbook reaching 5 times oversubscription at its peak. The notes qualify as 100% equity under IFRS accounting standards and are expected to receive a BB+ rating from S&P with 50% equity content under the agency's methodology.
Simultaneously, Aroundtown launched a tender offer targeting €2.5 billion in nominal value of its outstanding perpetual notes. The tender, which began Thursday and is scheduled to expire on October 30, aims to replace notes with higher coupon rates and potentially reduce the company's total perpetual notes balance.
Through this dual transaction, Aroundtown seeks to lower the average coupon rate on its perpetual notes while maintaining a strong financial position. The company stated that the refinancing strategy is expected to generate "significant accretive FFO growth."
Aroundtown SA, which trades on the Frankfurt Stock Exchange's Prime Standard segment under the symbol AT1, describes itself as the largest listed German commercial real estate company. The firm focuses on income-generating properties with value-add potential in major European cities, primarily in Germany, the Netherlands, and London.
The perpetual notes issuance and tender offer represent part of the company's debt management strategy. The information was provided in an official company press release.
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