Aroundtown tenders for any and all €650 million 1.5% notes due 2024

By Sarah Lizee

Olympia, Wash., Jan. 28 – Aroundtown SA launched a cash tender offer for any and all of its €650 million of 1.5% notes due 2024 (ISIN: XS1449707055), according to an announcement.

The purchase price will be determined under a modified Dutch auction.

The purchase price will equal the value of all remaining payments of principal and interest on the notes up to and including the scheduled maturity date of the notes, discounted to the settlement date at a discount rate equal to the purchase yield, calculated as the sum of the clearing spread and the interpolated mid-swap rate, minus accrued interest.

The maximum offer spread is 50 basis points.

Holders will also receive accrued interest.

After the settlement date, the company will have the option to redeem all of the then outstanding notes at par plus accrued interest, if any, to but excluding the redemption date, if 80% or more of the notes have been tendered in the offer.

The company said the offer follows the company's liability management strategy, both reducing the cost of debt and extending the average debt maturity period. Also, following the company’s long-term strategic goal to achieve an A global rating, it would like to have the option to redeem shorter and more expensive debt.

Tendered notes may be subject to pro rata scaling.

The offer will expire at 11 a.m. ET on Feb. 3.

Pricing will be set at 6 a.m. ET on Feb. 4.

Settlement is expected for Feb. 6.

The dealer managers are Citigroup Global Markets Ltd. (+44 20 7986 8969, liabilitymanagement.europe@citi.com) and Deutsche Bank AG (+44 20 7545 8011). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, aroundtown@lucid-is.com).

The issuer is a Luxembourg-based real estate company.

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