EQS-Adhoc: ​​​​​​​Grand City Properties S.A. decides not to exercise its option to voluntarily call EUR 200 million 2.75% Perpetual Notes with call date in January 2023 29.11.2022, 08:37 Uhr von EQS News Jetzt kommentieren: 0

Public disclosure of inside information according to Article 17 para. 1 of the Regulation (EU) No 596/2014 on market abuse (market abuse regulation – MAR)

Grand City Properties S.A. decides not to exercise its option to voluntarily call EUR 200 million 2.75% Perpetual Notes with call date in January 2023

Luxembourg, 29 November 2022 - The board of directors (the “Board”) of Grand City Properties S.A. (the “Company” or “GCP”) has decided today not to exercise the option to voluntarily redeem the EUR 200 million 2.75% undated subordinated notes subject to interest rate reset with a first call date on 22 January 2023 (ISIN XS1491364953) (“Perpetuals”) on such first call date. As stipulated in the terms and conditions of the Perpetuals, the coupon for the new interest period starting from 22 January 2023 will be the five-year swap rate plus a margin of 3.637% per annum. A potential option to defer the coupon payments will be considered closer to the respective interest payment date. Going forward, the Company will have the option to voluntarily redeem the Perpetuals at every future interest payment date.

The decision is based on economic considerations and reflects the current market conditions. Because financing rates currently available for issues of new perpetual notes are significantly less favorable than the step-up rate provided for in the terms and conditions of the Perpetuals, a potential replacement of the Perpetuals with new perpetual notes is economically not feasible. The decision is in line with GCP’s strategy to preserve cash, maintain low LTV-ratio and high headroom to its debt covenants in the current volatile market environment. The Perpetuals will continue to be accounted as equity under IFRS accounting and for the calculation of financial covenants of GCP’s senior bonds. The Company does not expect its credit rating of BBB+ from S&P to be negatively impacted due to this decision and remains committed to retain perpetual notes as part of its long-term financial structure. The Company will evaluate potential call options under its other perpetual notes closer to their respective optional call dates considering then prevailing market conditions.

Contact

Michael Bar-Yosef
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com

Important information:

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities mentioned in this announcement have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act.

If any announcements in this document contain forward-looking statements, such statements do not represent facts and are characterized by the words 'will', 'expect', 'believe', 'estimate', 'intend', 'contemplate', 'aim', 'assume' or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of Grand City Properties S.A. and the persons acting together with Grand City Properties S.A.. Such forward-looking statements are based on current plans, estimates and forecasts which Grand City Properties S.A. and the persons acting together with Grand City Properties S.A. have made to the best of their knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by Grand City Properties S.A. or the persons acting together with Grand City Properties S.A.. It should be kept in mind that the actual events or consequences may differ materially from those contained in or expressed by such forward-looking statements.