Aroundtown SA Announces Exchange Offer for Holders of Perpetual Notes

2 April 2024, Luxembourg - In a strategic financial maneuver, Aroundtown SA has initiated a voluntary exchange and tender offer aimed at certain holders of its Euro-denominated perpetual notes. This offer introduces an option for noteholders to exchange their existing notes for new ones under specific terms, along with a cash incentive for participating, or to opt for a cash redemption option that encompasses a 15% redemption of their exchanged notes for cash.

The target of this exchange offer comprises four ISIN codes of perpetual notes bearing distinct coupons. Additionally, the offer segregates the notes into two categories based on their current coupons and proposes the issuance of newly minted undated subordinated notes at varying coupon rates and reset term dates, all subject to attaining a minimum issue size of EUR 200,000,000.00 for each category.

Moreover, the new undated subordinated notes are to be guaranteed by Aroundtown SA and will be issued by Aroundtown Finance S.à r.l. These notes are scheduled for listing on the Luxembourg Stock Exchange and come with a BBB- rating expectation from S&P Global Ratings Europe Limited. With this offer, which runs until 9 April 2024, Aroundtown aims to reinforce its equity content as per S&P rating methodology.