CPI Property accepts tenders for €747 million 2022, 2023, 2024 notes

By Marisa Wong

Los Angeles, May 13 – CPI Property Group said it has decided to set the final acceptance amount under its previously announced tender offers at €746,703,193.

The tender offers for CPI Property’s outstanding €610 million 1.45% senior notes due April 14, 2022 (ISIN: XS1894558102), $450 million 4¾% senior notes due May 8, 2023 (ISIN: XS1955030280) and €825 million 2 1/8% notes due Oct. 4, 2024 (ISIN: XS1693959931) began on May 5 and expired at 11 a.m. ET on May 12.

CPI Property originally planned to purchase up to €600 million aggregate principal amount of notes. The tender amount was capped at €300 million for the 2022 notes, which had acceptance priority over the 2023 and 2024 notes.

According to a Monday press release, CPI Property has accepted all €222,793,000 of tendered 2022 notes. The 2022 notes will be purchased at 99.157.

The company will also purchase all $73,107,000 of tendered 2023 notes at 104.806. The company used an exchange rate of 1.08730 dollars per euro to determine the final acceptance amount in euros.

The company has accepted for purchase all €456,673,000 of 2024 notes at 98.739.

The purchase price was calculated at 6 a.m. ET on May 13 using a purchase spread over the relevant interpolated euro or dollar mid-swap rate. The spread is 220 basis points for the 2022 notes, 270 bps for the 2023 notes and 275 bps for the 2024 notes.

Holders will also receive accrued interest.

Settlement is expected to be on May 15.

The tender offer is conditioned on completion of an issuance of new notes.

Credit Suisse Securities (Europe) Ltd. (+44 20 7756 6909, +44 20 7756 6646), Deutsche Bank AG (+44 20 7545 8011) and HSBC Bank plc (+44 20 7992 6237, LM_EMEA@hsbc.com) are dealer managers for the offers.

Lucid Issuer Services Ltd. (+44 20 7704 0880, +44 20 3004 1590, cpi@lucid-is.com) is tender agent.

CPI had said the purpose of the offers is to proactively manage its debt redemptions, to extend its debt maturity profile and to reduce its leverage.

CPI Property is a Luxembourg-based real estate company focused on property investments in Central and Eastern Europe.

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