Aroundtown Issues 500 Million Euros Perpetual Notes To Optimize Capital Structure
Aroundtown SA has issued 500 million euros in perpetual notes with a 5.25% coupon, attracting strong investor interest with an oversubscribed orderbook. The notes will be classified as 100% equity under IFRS and are expected to receive a BB+ rating from S&P. Concurrently, the company is conducting a tender offer to repurchase higher coupon perpetual notes, targeting 2.5 billion euros to lower average coupon rates and enhance funds from operations while maintaining financial stability. AT1.DE shares closed at 3.24 euros, down 0.55%.
Aroundtown SA (AT1.DE) announced Thursday that it has successfully issued 500 million euros in benchmark perpetual notes with a 5.25 percent coupon, receiving strong investor demand with the orderbook oversubscribed five times.
The notes, classified as 100 percent equity under IFRS, are expected to be rated BB+ by S&P and granted 50 percent equity credit.
Simultaneously, the company launched a tender offer to repurchase perpetual notes carrying higher coupon rates, targeting 2.5 billion euros in nominal value.
The buyback, open from October 23 to October 30, aims to lower the average coupon rate and potentially reduce the total balance driving funds from operations growth while preserving a solid financial position.
AT1.DE closed Thursday's trading at 3.24 euros, down 0.0180 euros or 0.55 on the XETRA.
For comments and feedback contact: editorial@rttnews.com
Business News
