Aroundtown SA Makes Strategic Moves with €750 Million Bond Issuance

Aroundtown SA announced the issuance of a €750 million 5-year senior unsecured bond. The new bond, carrying a 3.5% coupon, is lower than the 4.8% coupon of the last issuance in July 2024, aiming to reduce the company's marginal cost of debt. The issuance saw strong investor interest, with the book being three times oversubscribed. It is expected to receive a BBB rating from S&P.

Simultaneously, Aroundtown initiated a tender offer targeting over €2 billion of nominal outstanding bonds. This move focuses on bonds with shorter maturities, within the next 18 months, and higher coupon bonds to streamline the debt maturity profile and reduce costs. The tender offer began on May 6, 2025, and will expire on May 13, 2025.

Aroundtown plans to use its available liquidity and the new bond proceeds to address short-term debt and reduce overall gross debt. To date, the company has repaid approximately €660 million in bonds, marking a proactive approach to extending its debt maturity profile.