Aroundtown launches tender offers for three dollar, sterling notes

By Marisa Wong

Los Angeles, July 5 – Aroundtown Real Estate Ltd. has begun cash tender offers for several series of senior notes issued by parent company Aroundtown SA, according to a notice on Wednesday.

The company is offering to purchase notes from the following series:

• $600 million outstanding 5.375% series 18 notes due March 21, 2029 with a first call date of Dec. 21, 2028 (ISIN: XS1964701822) at a minimum purchase price of 74;

• £500 million outstanding 3% series 4 notes due Oct. 16, 2029 with a first call date of July 16, 2029 (ISIN: XS1700429308) at a minimum purchase price of 62.8; and

• £400 million outstanding 3.625% series 20 notes due Jan. 10, 2031 with a first call date of April 10, 2031 (ISIN: XS1980255779) at a minimum purchase price of 60.9.

The company is proposing to accept an aggregate principal amount of notes – converted, if applicable, into the dollar-equivalent at the applicable sterling-to-dollar exchange rate – of $200 million across all the series.

The company said it may choose to increase the overall offer cap or purchase notes in an aggregate principal amount that is less than the cap. The company will also determine at its discretion the amount of notes from each series that it elects to purchase.

The purchase price of each series will be determined through an unmodified Dutch auction procedure.

The company will also pay accrued interest.

Tenders may be subject to proration.

The offers began on July 5 and will expire at 11 a.m. ET on July 11.

Results will be announced on July 12.

Settlement is expected to occur on July 13.

The dealer managers are Citigroup Global Markets Ltd. (+44 20 7986 8969; liabilitymanagement.europe@citi.com), Deutsche Bank AG (+44 20 7545 8011) and Goldman Sachs Bank Europe SE (+44 20 7774 4836; liabilitymanagement.eu@gs.com).

Kroll Issuer Services Ltd. (+44 20 7704 0880; aroundtown@is.kroll.com; attn.: Jacek Kusion; https://deals.is.kroll.com/aroundtow) is the tender agent.

The company said the purpose of the offers is to, among other things, proactively manage its debt profile.

Aroundtown Real Estate is based in Cyprus. Parent Aroundtown is a Luxembourg-based commercial real estate company.

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