Aroundtown buys €21.5 million 1.5% notes, €338.6 million 2.125% notes

By Angela McDaniels

Tacoma, Wash., July 9 – Aroundtown SA decided to accept tenders for €21.5 million of its 1.5% notes due 2022 and €338.6 million of its 2.125% notes due 2023, according to a filing with the London Stock Exchange.

A tender offer for the €277 million of outstanding 1.5% notes and €550 million of outstanding 2.125% notes began July 2 and ended at 11 a.m. ET on July 8.

For the 1.5% notes, the purchase prices is 103.986, the interpolated mid-swap rate is negative 0.37%, the clearing spread is 45 basis points and the purchase yield is 0.08%.

For the 2.125% notes, the purchase price is 107.15, the interpolated mid-swap rate is negative 0.33%, the clearing spread is 50 bps and the purchase yield is 0.17%.

Holders will also receive accrued interest.

Settlement is expected for July 11.

Pricing was set at 6 a.m. ET on July 9.

The maximum offer spread was 45 bps for the 1.5% notes and 56 bps for the 2.125% notes.

No scaling factor was applied to either series of notes.

The offer remains subject to a financing condition. When the offer began, the company said it might issue new euro-denominated fixed-rate notes under its €10 billion euro medium-term note program.

The company might purchase further notes in the open market or otherwise. If purchases and/or redemptions have been effected for 80% or more of the principal amount of the 1.5% notes or the 2.125% notes, the company will consider exercising its option to redeem all outstanding 1.5% notes or 2.125% notes, as applicable, at their principal amount plus accrued interest.

The company said the purpose of the offer is to proactively manage upcoming debt redemptions.

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

Aroundtown is a Luxembourg-based real estate company.

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