Grand City buys 37.8% of 0.25% convertibles in offer, tenders for 2% notes until Friday

By Susanna Moon

Chicago, Feb. 20 – Grand City Properties SA said holders had tendered 37.8% of its €450 million principal amount of 0.25% convertible notes due 2022 in the offer that ended at noon ET on Feb. 19.

Using a reverse bookbuilding, the purchase price was set at €101,000 per €100,000 principal amount including accrued interest, according to a company announcement.

There will be €279.8 million of the convertibles left outstanding after settlement on Feb. 26.

Grand City was tendering for its €500 million 2% notes due 2021 and €450 million 0.25% convertible notes due 2022 via a new issue of senior notes, according to a separate announcement.

The tender offer price for the convertibles was to be between €100,750 and €101,000 including accrued interest.

If after the settlement at least 80% of the convertibles has been purchased, redeemed or converted, the company said it plans to redeem all of the outstanding notes at par plus accrued interest to but excluding the redemption date.

The offers are not open to any persons located or residing in the United States or that are otherwise U.S. Persons under Regulation S.

The company said it has opened an issue of euro benchmark size senior notes due 2027 under the euro medium-term note program.

Proceeds of the new notes will be used to refinance and to repay existing debt, including those in connection with the offer.

Deutsche Bank AG, London Branch, Goldman Sachs International, BofA Merrill Lynch and Morgan Stanley & Co. International plc are the joint dealer managers.

Euro notes tender

In the offer for the €179.4 million of outstanding 2% notes, pricing will be set at 6 a.m. ET on Feb. 25 using the interpolated mid-swap rate plus 10 basis points.

The tender began on Feb. 19 and will remain open until 11 a.m. ET on Feb. 23.

The company also will pay accrued interest.

If after the settlement at least 80% of the convertibles has been purchased, redeemed or converted, the company said it plans to redeem all of the outstanding notes at par plus accrued interest to but excluding the redemption date.

The company previously purchased and canceled €320.6 million, or 64.12%, of the principal amount of the notes.

The purpose of the offers is to proactively manage debt redemptions, the release added.

Settlement is expected to occur on Feb. 27.

Deutsche Bank AG, London Branch (+44 20 7545 8011), Goldman Sachs International (+44 20 7774 9862 or liabilitymanagement.eu@gs.com), Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com) and Morgan Stanley & Co. International plc (+44 20 7677 5040 or managementeurope@morganstanley.com) are the dealer managers. Lucid Issuer Services Ltd. (Tel: +44 20 7704 0880 or gcp@lucid-is.com) is the tender agent.

Grand City Properties is a Luxembourg-registered specialist real estate company focused on investing in and managing value-added opportunities in the real estate property market in Germany, primarily in densely populated areas.

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