Klepierre begins tender for 2.75% bonds due 2019, 3.25% bonds due 2021

By Susanna Moon

Chicago, Sept. 20 – Klepierre SA said it began a cash tender offer for its €500 million 2.75% bonds due September 2019 and for the €500 million 3.25% bonds due February 2021 issued by Corio NV.

The offer will end on Sept. 26.

JPMorgan, RBS and Societe Generale are the active bookrunners in the tender offer.

Klepierre issued €600 million of bonds due Sept. 29, 2031 on Tuesday, with pricing at 60 basis points above the swap rate for a coupon of 1.25%, according to a company announcement.

“This bond features the lowest coupon ever for a long-dated (more than 15-year) euro bond issue by a REIT sector company, illustrating in favorable market conditions Klepierre’s strong credit quality and business profile,” the release said.

Under current market conditions, the company expects its net cost of debt to fall below 2% by 2017.

“These transactions support the group’s financing strategy, which aims to reduce its financing costs while lengthening its average maturity schedule.”

Klepierre is a Paris-based real estate investment trust focused on shopping centers. Corio is a retail property management company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.