Adler Real Estate launches €1.5 billion notes in two tranches

By Paul A. Harris

Portland, Ore., Jan. 7 – Adler Real Estate AG launched €1.5 billion of senior notes (expected BB+) in two tranches on Thursday, according to market sources.

A €700 million tranche of five-year notes launched with a 1 7/8% coupon at a discount to yield 2 1/8%.

An €800 million tranche of eight-year notes launched with a 2¼% coupon at a discount to yield 2½%.

The deal was heard to be playing to €4.9 billion of demand across both tranches, a source said.

JPMorgan is global coordinator and joint bookrunner for the Regulation S deal. Barclays and Deutsche Bank are also joint bookrunners.

The issuing entity will be Adler Group SA.

The Hamburg, Germany-based real estate group plans to use proceeds to refinance debt, including funding its any-and-all tender offer for the existing €500 million 1½% notes due December 2021. The tender offer expires on Jan. 12.

- Coupons: 1.875% & 2.250% (bonds will price at discount)

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