LUXEMBOURG (dpa-AFX) - Commercial real estate company Aroundtown (AT1.DE) said that it successfully issued a 750 million euros 5-year senior unsecured bond and in parallel launched a tender offer to buyback certain bond series targeting over 2 billion euros nominal amount. The company is pro-actively managing its debt structure by extending its maturity profile and supporting its costs of debt.
The company stated that the new Series 41 Straight Bond will carry a coupon of 3.5% significantly lower to the coupon of 4.8% at the last issuance in July 2024 and marks the successful reduction of the marginal cost of debt. The bond is expected to be rated BBB by S&P.
In parallel, the company has launched a tender offer to holders of certain series of its outstanding bonds as part of a liability management exercise.
The tender targets over 2 billion euros nominal amount of outstanding bonds and is mainly aimed at bond series with shorter term maturities, within the next 18 months, with the goal of proactively managing the Company's debt maturity profile, as well as bond series with a relatively higher coupon to support its costs of debt. The Tender was launched on 6 May 2025 and is expected to expire on 13 May 2025.
The company expects to use its liquidity position, together with the proceeds of the Issuance, to repay debt as part of the Tender, as well as to repay short-term debt at maturity in the upcoming periods. Year-to-date the Company has already repaid about 660 million euros of bonds and is expecting to further reduce gross debt in the coming period.
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