Grand City Properties Completes Perpetual Notes Refinancing

Grand City Properties S.A. has successfully completed a tender offer for its perpetual notes, announced last week. This transaction is part of their strategy to refinance notes with higher coupon rates. The company has issued €600 million in new perpetual notes with a 4.75% coupon, while planning to redeem approximately €500 million of higher coupon notes.

This refinancing is expected to save the Company around €7 million annually in coupon payments. It is also favorable to the Company's credit metrics under S&P's methodology. Additionally, Grand City Properties has begun refinancing €700 million of 1.5% perpetual notes, buying back about €100 million ahead of the first call date in 2026.

This proactive financial move aims to improve financial outcomes and maintain favorable credit ratings.