AccorHotels to buy back €350 million of 2.625% senior bonds due 2021

By Marisa Wong

Morgantown, W.Va., Jan. 31 – AccorHotels announced the repurchase of €350 million of Accor SA’s €900 million 2.625% senior bonds due Feb. 5, 2021.

As previously reported, Accor will also repurchase €385.9 million of its €900 million undated six-year non-call deeply subordinated fixed-to-reset rate bonds issued on June 30, 2014. The hybrid bonds are being repurchased under a tender offer.

AccorHotels said the buybacks complete its liability management operation that began with the two bond issues completed on Jan. 24 for €1.1 billion – a €500 million perpetual hybrid bond with a 4.375% coupon and a €600 million seven-year bond with a 1.75% coupon.

The company said it will also redeem its €335 million bonds maturing in March 2019.

With all of these transactions, the group will lengthen the average maturity of its debt by over a year and optimize its average cost of funding, according to a press release.

Accor is a Paris-based hospitality company.

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