S&P gives Aroundtown bond BBB-

S&P said it gave its BBB- long-term issue rating to the perpetual, optionally deferrable, and subordinated hybrid capital security to be issued by Aroundtown SA. The offering is expected to be benchmark size of about €500 million.

The agency based the rating on Aroundtown’s BBB+ issuer rating and then deducted a notch for subordination and another for the ability to defer interest.

Aroundtown plans to launch a tender for up to €200 million of its €600 million hybrid bond, with a first call date in next January. “We understand that the tender offer is conditional on the issuance of the new hybrid, hence replacing the tendered amount with part of the new hybrid proceeds,” the agency said in a press release.

“We expect Aroundtown’s overall hybrid issuance will not exceed our 15% hybrid capitalization threshold, given the company’s commitment regarding its total hybrid capital,” S&P said.

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