Citycon announces final results of tenders for euro, krone notes

By Sarah Lizee

Olympia, Wash., Nov. 19 – Citycon Oyj announced the final results of its offer to purchase any and all of its €500 million 3.75% notes due 2020 and to purchase a capped amount of the €300 million 2.375% guaranteed notes due 2022 and the €350 million 2.5% guaranteed notes due 2024 of Citycon Treasury BV, according to a notice.

The offer expired at 11 a.m. ET on Nov. 15.

As of the expiration time, the following amounts had been tendered:

• €143,063,000 of the €218,674,000 3.75% notes due 2020, with pricing set using a purchase yield of negative 0.2% for a purchase price of 102.325;

• €91,734,000 of the €300 million 2.375% guaranteed notes due 2022, with pricing set using a purchase yield of 0.332% for a purchase price of 105.21;

• €33,832,000 of the €350 million 2.5% guaranteed notes due 2024.

The company said it will accept €143,063,000 of the 3.75% notes, €45,117,000 of the 2.375% notes and none of the 2.5% notes for purchase.

The 2.375% notes were subject to a proration factor of 50%.

Settlement is slated for Nov. 22.

As previously reported, the company said the purpose of the tender and new issue is to reduce its leverage and optimize its capital structure.

The offer was subject to a financing condition. Citycon priced €350 million of 4.496% green capital securities on Nov. 18, according to a notice.

The net proceeds of the new notes will be used, among other things, to purchase notes under the tender offer.

Danske Bank A/S (+45 33 64 88 51, liabilitymanagement@danskebank.dk) and UBS Europe SE (+44 20 7568 1121, ol-liabilitymanagement-eu@ubs.com) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880, citycon@lucid-is.com) is the tender agent.

Separate Dutch tender

Citycon also announced the final results of its separate conditional tender for up to NOK 900 million of its NOK 1.25 billion bonds due March 1, 2021 issued by Citycon Treasury.

The company received tenders for NOK 1.1 billion of the bonds by the deadline of 11 a.m. ET on Nov. 15. The company said it has decided to accept for purchase NOK 900 million of the bonds at 101.4 plus accrued interest.

The tender offer process was conducted as a reverse Dutch auction, where the offeror through the arranger, Danske Bank, received offers from the bondholders on a confidential basis for sales of desired volumes at desired prices to the offeror.

Bonds offered at the highest price got 90.4% allocation.

All bondholders were invited and are eligible to provide offers for sale of all or a portion of their bonds.

Settlement is scheduled for Nov. 22.

Citycon is a Helsinki, Finland-based property investment company with a focus on retail centers.

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