Aroundtown SA issues €750 million bond, launches buyback tender

LUXEMBOURG - Aroundtown SA, a Luxembourg-based commercial real estate company, has effectively managed its debt maturity schedule by issuing a €750 million bond and initiating a tender offer to buy back certain bond series. The company announced the successful issuance of a 5-year senior unsecured bond with a coupon rate of 3.5%, a reduction from the previous rate of 4.8% in July 2024. This issuance, which occurred today, was met with strong investor demand, with the book being three times oversubscribed.

Concurrently, Aroundtown launched a tender offer targeting over €2 billion nominal amount of its outstanding bonds, particularly those with shorter-term maturities within the next 18 months. This move is aimed at managing the company’s debt profile and supporting its cost of debt. The tender offer commenced today and is expected to conclude on May 13, 2025.

The company plans to utilize its liquidity, along with the proceeds from the new bond issuance, to repay the targeted debt and other short-term obligations as they come due. So far this year, Aroundtown has repaid approximately €660 million of bonds and anticipates further gross debt reduction in the near future.

Aroundtown SA is the largest listed German commercial real estate company, trading on the Prime Standard of the Frankfurt Stock Exchange under the symbol AT1. It focuses on investing in income-generating properties with value-add potential in central locations of major European cities, predominantly in Germany, the Netherlands, and London.

The bond is expected to receive a BBB rating from S&P. It is important to note that this announcement is not an offer to sell or a solicitation of an offer to buy any securities. The securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States without registration or an exemption from registration.

This report is based on a press release statement and is intended for informational purposes only.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.