DJ Grand City Properties S.A. announces offer to the holders of its outstanding EUR 500,000,000 2.00 per cent. Notes due 2021 to tender such Notes for purchase by the Company for cash
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Grand City Properties S.A. (IRSH) Grand City Properties S.A. announces offer to the holders of its outstanding EUR 500,000,000 2.00 per cent. Notes due 2021 to tender such Notes for purchase by the Company for cash 21-Nov-2018 / 10:35 CET/CEST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. *NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (THE 'UNITED STATES') OR IN OR INTO OR TO ANY PERSON RESIDENT OR LOCATED IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO PUBLISH OR DISTRIBUTE THIS DOCUMENT.* *21 November 2018* *Grand City Properties S.A. announces offer to the holders of its outstanding EUR 500,000,000 2.00 per cent. Notes due 2021 to tender such Notes for purchase by the Company for cash at a price to be calculated by reference to a purchase spread determined pursuant to a modified Dutch auction* The Board of Grand City Properties S.A. (the '*Company*') has decided today to offer to the holders of its EUR 500,000,000 2.00 per cent. Notes due 2021 (of which EUR 138,800,000 are currently outstanding, the '*Notes*') to tender such Notes for purchase by the Company for cash (the '*Offer*'). The Offer shall be subject to the terms and conditions set out in the tender offer memorandum dated 21 November 2018 (the '*Tender Offer Memorandum*') prepared by the Company. Capitalised terms used in this announcement but not defined have the meanings given to them in the Tender Offer Memorandum. *Description *Outstanding *Maximum *Amount of the *ISIN / Principal *Benchmark* Purchase subject Notes* Common Code* Amount* Spread* to the Offer* Any and all at the Maximum Repurch ase Spread. Subject to EUR Minimum 500,000,000 XS1130507053 EUR Interpolated Target 2.00 per / 113050705 138,800,000 Mid-Swap 15 bps Repurch cent. Notes Rate ase due 2021 Amount as further describ ed in the Tender Offer Memoran dum. If after the Settlement Date purchases (and corresponding cancellations) and/or redemptions should have been effected in respect of 80 per cent or more in aggregate principal amount of the Notes, the Company intends to redeem all of the then outstanding Notes at their principal amount, together with accrued but unpaid interest, if any, to (but excluding) the redemption date pursuant to the terms and conditions of the Notes. The Company has previously purchased EUR 361,200,000 of the Notes, representing 72.2% of the aggregate principal amount of the Notes issued. *Rationale for the Offer* The purpose of the Offer is to proactively manage upcoming debt redemptions. *The Offer* The '*Purchase Price*' in respect of the Notes will be determined by the Dealer Manager at the Pricing Time in accordance with market convention, and will be the price which reflects the yield to maturity on the Settlement Date equal to the sum (such sum, the '*Purchase Yield*') of (a) the Interpolated Mid-Swap Rate (as defined in the Tender Offer Memorandum) and (b) the Clearing Spread (as defined below). Specifically, the Purchase Price per EUR 100,000 in principal amount of the Notes will equal (a) the value per EUR 100,000 in principal amount of all remaining payments of principal and interest due to be made up to and including the maturity date of the Notes, discounted to the Settlement Date at a discount rate equal to the Purchase Yield, minus (b) the Accrued Interest, all calculated in accordance with the formula set forth in the Tender Offer Memorandum and rounded to the nearest EUR 0.01 (with EUR 0.005 being rounded upwards). *Modified Dutch Auction Procedure* If the Company decides to accept any tenders of Notes, it will determine the purchase spread in whole basis points (the '*Clearing Spread*') for the Notes in accordance with the Modified Dutch Auction Procedure described below. The Clearing Spread in respect of the Notes will apply to all Notes accepted for purchase and shall be the lower of (i) the Maximum Purchase Spread and (ii) the single highest spread specified in Competitive Tender Instructions by tendering Noteholders that will enable the Company to purchase its desired principal amount of Notes, or, if no Competitive Tender Instructions are tendered in respect of the Notes, the Maximum Purchase Spread. Following the Expiration Deadline and subject to the foregoing, the Company will determine the Clearing Spread for the Notes in its sole and absolute discretion. Under the Modified Dutch Auction Procedure, the Company will determine, in its sole discretion (i) the aggregate nominal amount of Notes (if any) (such amount, the '*Final Acceptance Amount*') that it will accept for purchase pursuant to the Offer, and (ii) the Clearing Spread that will be used in the calculation, at the Pricing Time, of the Purchase Yield and the Purchase Price for Notes validly tendered and accepted for purchase pursuant to the Offer, in each case taking into account the aggregate nominal amount of Notes tendered and the purchase spreads at which such Notes are tendered (or deemed to be tendered, as set out below). Under the Modified Dutch Auction Procedure, Noteholders may submit Tender Instructions on a 'non-competitive' or a 'competitive' basis, as follows: (a) a '*Non-Competitive Tender Instruction*' is a Tender Instruction that either (i) does not specify a purchase spread, or (ii) specifies a purchase spread equal to the Maximum Purchase Spread. Each Non-Competitive Tender Instruction that does not specify a purchase spread, will be deemed to have specified the Maximum Purchase Spread; and (b) a '*Competitive Tender Instruction*' is a Tender Instruction that specifies a purchase spread over the Interpolated Mid-Swap Rate (in increments of 1 basis point below the Maximum Purchase Spread with any other amount rounded to the nearest 1 basis point increment below the Maximum Purchase Spread (and rounded up in the case of a 0.5 basis point increment)). For further information, please refer to the Tender Offer Memorandum. A Tender Instruction that specifies a purchase spread higher than the Maximum Purchase Spread will be treated as an invalid Tender Instruction. If the Company accepts a valid Tender Instruction, the relevant Noteholder will receive the Purchase Price and Accrued Interest for the Notes as determined in the manner described in the Tender Offer Memorandum. The Company will pay the Purchase Price and Accrued Interest in respect of the Notes to each Noteholder whose Competitive Tender Instruction is accepted, even if the purchase spread specified by the Noteholder is greater than the Clearing Spread or the Noteholder submitted a Non-Competitive Tender Instruction. The Company will not accept Competitive Tender Instructions that specify purchase spreads lower than the Clearing Spread. Accordingly, if the Company determines that the Clearing Spread for the Offer will be the Maximum Purchase Spread, Notes tendered pursuant to Competitive Tender Instructions will not be accepted for purchase pursuant to the Offer. *Final Acceptance Amount* The Company currently proposes to accept any and all validly tendered Notes for repurchase at the Maximum Purchase Spread. For the avoidance of doubt, this means, that the Final Acceptance Amount determined by the Company will at least be equal to the aggregate principal amount of Notes validly tendered via Non-Competitive Tender Instructions and accepted for repurchase by the Company. The Company may however, in its sole discretion, decide to determine a lower Clearing Spread as necessary to enable the Company to achieve its desired minimum aggregate repurchase amount of Notes of EUR 38,800,000 (the '*Minimum Target Repurchase Amount*'). *Scaling* If the aggregate nominal amount of Notes validly tendered (i) pursuant to Non-Competitive Tender Instructions and (ii) pursuant to Competitive Tender Instructions that specify a purchase spread greater than or equal to the Clearing Spread, is greater than the Final Acceptance Amount, the Company intends to accept for purchase (A) first, all such Notes tendered at
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purchase spreads greater than the Clearing Spread or pursuant to Non-Competitive Tender Instructions in full, and (B) second, all such Notes tendered at the Clearing Spread on a pro rata basis such that the aggregate nominal amount of Notes accepted for purchase (if any) is no greater than the Final Acceptance Amount. For the avoidance of doubt, the Final Acceptance Amount determined by the Company will at least be equal to the aggregate principal amount of Notes validly tendered via Non-Competitive Tender Instructions and accepted for repurchase by the Company. *Accrued Interest* The Company will also pay an Accrued Interest Payment in respect of Notes validly tendered and delivered and accepted for purchase by the Company pursuant to the Offer. *Total Amount Payable to Noteholders* If the Company decides to accept valid tenders of Notes pursuant to the Offer, the total consideration that will be payable to each Noteholder on the Settlement Date for the Notes accepted for purchase from such Noteholder will be an amount (rounded to the nearest EUR 0.01, with EUR 0.005 being rounded upwards) equal to the sum of: (a) the product of (i) the aggregate principal amount of the Notes accepted for purchase from such Noteholder pursuant to the Offer and (ii) the Purchase Price; and (b) the Accrued Interest Payment on the Notes. The Purchase Price will be determined in accordance with market convention, at the Pricing Time on the Pricing Date in the manner described in the Tender Offer Memorandum. *Expected Timetable of Key Events* The following table sets forth the expected dates and times of the key events relating to the Offer. The times and dates below are indicative only and subject to changes. *Events* *Times and Dates * (All times are CET) *Commencement of the Offer* 21 November 2018 Announcement of the Offer made by publication on the website of the Irish Stock Exchange at www.ise.ie [1] and through the Clearing Systems. Tender Offer Memorandum available from the Tender Agent. *Expiration Deadline* 5:00 p.m. on 4 December 2018 Final deadline for receipt of valid Tender Instructions by the Tender Agent in order for Noteholders to be able to participate in the Offer. *Announcement of Clearing Spread At or around 9 a.m. on 5 and indicative Offer Results* December 2018 Announcement by the Company of whether it intends to accept valid tenders of Notes for purchase pursuant to the Offer and, if so accepted, (i) the Clearing Spread, (ii) the indicative Final Acceptance Amount and (iii) any indicative Scaling Factor. *Pricing Date * 11:00 a.m. on 5 December 2018 Determination of the Interpolated Mid-Swap Rate, the Purchase Yield and the Purchase Price. *Announcement of Offer Results* As soon as reasonably practicable after the Announcement by the Company of Pricing Time on the Pricing whether it will accept valid Date tenders of Notes pursuant to the Offer and, in respect of Notes accepted for purchase, (i) the Final Acceptance Amount and any Scaling Factor, (ii) the Purchase Yield, Purchase Price and Accrued Interest, and (iii) the final aggregate nominal amount of Notes that will remain outstanding after the Settlement Date. *Settlement Date* 10 December 2018 Expected Settlement Date for the Offer. The Company may, subject to applicable laws, at its option and in its sole discretion, at any time before any acceptance by it of any Notes tendered for purchase in the Offer extend each of the dates above (in which case all references in the Tender Offer Memorandum to such extended date will, unless the context otherwise requires, be to the latest time and date to which such date has been so extended). *Tender Instructions* A separate Tender Instruction must be completed on behalf of each beneficial owner of the Notes. In order to participate in, and be eligible to receive the Purchase Price and the Accrued Interest Payment pursuant to each of the Offer, Noteholders must validly tender their Notes by delivering, or arranging to have delivered on their behalf, a valid Tender Instruction in respect of Notes held by such Noteholders that is received by the Tender Agent by the Expiration Deadline. See '_Procedures for Participating in the Offer_' in the Tender Offer Memorandum. Tender Instructions must be submitted in respect of a minimum nominal amount of Notes of EUR 100,000 and may thereafter be submitted in integral multiples of EUR 100,000. Tender Instructions which relate (including after any pro rata scaling) to a nominal amount of Notes of less than EUR 100,000 will be rejected. Tender Instructions may be submitted on a 'non-competitive' or a 'competitive' basis, as further described in the Tender Offer Memorandum. Noteholders are advised to check with any bank, securities broker or other intermediary through which they hold Notes when such intermediary would need to receive instructions from a Noteholder in order for that Noteholder to be able to participate in, or (in the limited circumstances in which revocation is permitted) revoke their instruction to participate in, an Offer before the deadlines specified in the Tender Offer Memorandum. The deadlines set by any such intermediary and each Clearing System for the submission of Tender Instructions may be earlier than the relevant deadlines specified above. *General* The complete terms and conditions of the Offer is set forth in the Tender Offer Memorandum, which will be sent to eligible Noteholders at their request. Noteholders are urged to read the Tender Offer Memorandum carefully. The Company is not under any obligation to accept any tender of Notes for purchase pursuant to the Offer. Tenders of Notes for purchase may be rejected in the sole and absolute discretion of the Company for any reason, and the Company is not under any obligation to Noteholders to furnish any reason or justification for refusing to accept a tender of Notes for purchase. *For example, tenders of Notes for purchase may be rejected if the Offer is terminated, if the Offer does not comply with the relevant requirements of a particular jurisdiction or for any other reason.* Notes that are not successfully tendered for purchase pursuant to the Offer will remain outstanding. If after the Settlement Date purchases (and corresponding cancellations) and/or redemptions should have been effected in respect of 80 per cent or more in aggregate principal amount of the Notes, the Company intends to redeem all of the then outstanding Notes at their principal amount, together with accrued but unpaid interest, if any, to (but excluding) the redemption date pursuant to the terms and conditions of the Notes. The Company has previously purchased EUR 361,200,000 of the Notes, representing 72.2% of the aggregate principal amount of the Notes issued. Noteholders are advised that the Company may, in its sole discretion, accept tenders of Notes pursuant to the relevant Offer on more than one date if such Offer is extended or re-opened. The Company has retained Morgan Stanley & Co. International plc to act as dealer manager (the '*Dealer Manager*') and Lucid Issuer Services Limited to act as the Tender Agent (the '*Tender Agent*'). Questions or requests for assistance concerning the terms of the Offer should be directed to the Dealer Manager or the Tender Agent at: *Contact Details:* *THE DEALER MANAGER* *Morgan Stanley & Co. International plc* 25 Cabot Square Canary Wharf London E14 4QA United Kingdom Telephone: +44 (0)20 7677 5040 Attention: Liability Management Group Email: liabilitymanagementeurope@morganstanley.com *THE TENDER AGENT* *Lucid Issuer Services Limited* Tankerton Works 12 Argyle Walk London WC1H 8HA United Kingdom Telephone: +44 20 7704 0880 Attention: Arlind Bytyqi Email: gcp@lucid-is.com This announcement is made by the Company: *Grand City Properties S.A.* 1, avenue du Bois L-1251 Luxembourg Grand Duchy of Luxembourg *DISCLAIMER *This announcement must be read in conjunction with the Tender Offer Memorandum. This announcement and the Tender Offer Memorandum contain important information which should be read carefully before any decision is made with respect to the Offer. If you are in any doubt as to the contents of this announcement or the Tender Offer Memorandum or the action you should take, you are recommended to seek your own financial and legal advice, including as to any tax consequences, immediately from your broker, bank manager, solicitor, accountant or other independent financial or legal adviser. Any individual or company whose Notes are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee or intermediary must contact such entity if it wishes to participate in the Offer. None of the Dealer Manager, the Tender Agent and the Company makes any recommendation as to whether Noteholders should tender Notes for purchase pursuant to the Offer. None of the Dealer Manager, the Tender Agent and any of their respective directors, officers, employees, agents or affiliates assumes any responsibility for the accuracy or completeness of the information concerning the Company, the Notes or the Offer contained in this announcement or in the Tender Offer Memorandum. None of the Company, the Dealer Manager, the Tender Agent, or any director, officer, employee, agent or affiliate of any such person, is acting for any Noteholder, or will be responsible to any Noteholder for providing any protections which would be afforded to its clients or for providing advice in relation to the Offer, and accordingly none of the Company, the Dealer Manager, the Tender Agent, or any director, officer, employee, agent or affiliate of any such person,
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