Tuesday, May 21, 2024

Aroundtown SA Maintains GBP 400 Million 4.75% Perpetual Notes: Exploring Financial Implications and Market Conditions


Aroundtown SA Decides Against Calling GBP 400 Million 4.75% Perpetual Notes Early

Luxembourg, May 15, 2024 – In a recent announcement, Aroundtown SA (“Aroundtown” or the “Company”), a leading commercial real estate company in Germany, has notified the public of its decision to refrain from an early redemption of its GBP 400 million 4.75% undated subordinated notes. Initially set for the first call date on June 25, 2024, the decision against exercising the voluntary call option on these perpetual notes (ISIN XS2017788592) has been made after thorough deliberation by the company’s board of directors (the “Board”).

Following a successful exchange and tender offer, the outstanding nominal amount of the perpetual notes stands at GBP 20.4 million. The decision not to execute the early redemption option has been influenced by the current market conditions. Nonetheless, the opportunity remains for Aroundtown to call the perpetuals at or around the subsequent interest payment dates as specified in the terms of the notes.

In alignment with international financial reporting standards (IFRS), these perpetual notes will continue to be recorded as 100% equity in Aroundtown’s balance sheet. This classification underscores the impact of the notes on the equity base of the company, cementing its influence on the financial leverage and covenant calculations related to Aroundtown’s senior bond offerings.

About Aroundtown SA

Trading under the symbol AT1 on the Prime Standard of the Frankfurt Stock Exchange, Aroundtown stands as the paramount listed German commercial real estate entity, boasting an S&P rating of BBB+. The company’s investment strategy primarily targets income-generating properties that possess a potential for value addition. Aroundtown’s portfolio predominantly consists of properties located in core urban areas within top-tier European cities, with a significant focus on Germany and the Netherlands.

Established under the laws of the Grand Duchy of Luxembourg, Aroundtown SA operates as a public limited liability company (société anonyme) with its headquarters situated at 37, Boulevard Joseph II, L-1840 Luxembourg, Grand Duchy of Luxembourg. With a registration number of B217868 in the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, Luxembourg), the company highlights its commitment to transparency and regulatory compliance in all jurisdictions of operation.

This recent announcement underlines Aroundtown’s strategic financial management and market-driven decision-making process. By choosing not to call the GBP 400 million 4.75% Perpetual Notes early, Aroundtown demonstrates its adaptive approach to changing market conditions and its strong commitment to upholding shareholder value through prudent capital management practices.

Natalie Kimura
Natalie Kimurahttps://www.businessorbital.com/
Natalie Kimura is a business correspondent known for her in-depth interviews and feature articles. With a background in International Business and a passion for global economic affairs, Natalie has traveled extensively, providing her with a unique perspective on international trade and global market dynamics. She started her career in Tokyo, contributing to various financial journals, and later moved to London to expand her expertise in European markets. Natalie's expertise lies in international trade agreements, foreign investment patterns, and economic policy analysis.

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