Grand City declines to call €200 million 2.75% subordinated notes

By Mary-Katherine Stinson

Lexington, Ky., Nov. 29 – Grand City Properties SA’s board decided not to exercise its option to redeem its €200 million 2.75% undated subordinated notes (ISIN: XS1491364953) subject to interest rate reset with a first call date on Jan. 22, 2023, according to a notice.

As stipulated in the terms and conditions, the coupon for the new interest period starting from Jan. 22, 2023 will be five-year swaps plus 363.7 basis points.

The company stated that an option to defer the coupon payments will be considered closer to the interest payment date.

The perpetuals will be redeemable at the company’s option at every future interest payment date.

Grand City cited economic considerations reflecting the current market conditions as the basis for its decision.

The company stated it does not expect its credit rating of BBB+ from S&P Global Ratings to be negatively impacted due to this decision and remains committed to retain perpetual notes as part of its long-term financial structure.

Grand City Properties is a Luxembourg-registered specialist real estate company focused on investing in and managing value-added opportunities in the real estate property market in Germany, primarily in densely populated areas.

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