URW Successfully Places €815 Million Hybrid Notes for Growth
URW Successfully Places Significant Hybrid Notes
Unibail-Rodamco-Westfield (“URW” or “the Group”) has announced its latest achievement in financial strategy with the placement of €815 million in new hybrid notes, specifically designed to enhance its capital structure. These deeply subordinated perpetual fixed rate resettable notes, referred to as Perp-NC 5.5 Hybrid Notes, bear a competitive coupon of 4.875%. This successful venture is a testament to URW’s solid market position and the strong appetite investors have for its credit profile.
Investor Demand Shows Robust Interest
The issuance experienced overwhelming demand, with subscriptions exceeding the offering by an impressive 3.1 times. At the height of its order book, interest soared to approximately €2.5 billion, showcasing the high esteem in which URW is held by the investment community. Such enthusiasm not only underscores the Group's credibility but also reflects investor confidence in its strategic direction.
Tender Offer for Existing Notes
In conjunction with this significant issuance, URW also launched a concurrent tender offer targeting its existing €995 million 7.250% Hybrid Perp-NC 2028 notes and €750 million 2.875% Hybrid Perp-NC 2026 notes. Classifying the 2028 notes as Priority 1, the company is actively looking to improve its financial flexibility by refinancing. Meanwhile, the second priority provides URW with the discretion needed to optimize its portfolio during this process.
Upcoming Trading and Financial Strength
Market participants can look forward to the new notes settling and beginning trading on Euronext Paris shortly after the conclusion of the tender offer. This all aligns with the Group's objective to refine its existing hybrid portfolio, improve overall coupon rates, and extend average periods to first reset dates. Such measures are essential as URW navigates a progressively competitive landscape.
About Unibail-Rodamco-Westfield
URW operates as a leading owner, developer, and operator of sustainable, high-quality real estate in some of the most vibrant cities globally. The Group’s portfolio is impressive, comprising 67 shopping centers across 11 countries, with 39 centers proudly carrying the iconic Westfield brand. Collectively, these centers draw over 900 million annual visitors, providing a dynamic platform for retailers and brands to engage consumers effectively.
Commitment to Sustainability and Urban Development
URW's vision extends beyond commercial goals; the Group is deeply committed to urban regeneration through innovative, mixed-use developments and retrofitting projects aimed at achieving industry-leading sustainability standards. This commitment is embodied in the Group’s Better Places plan, which aspires to generate positive environmental, social, and economic impacts within the communities it serves.
The Financial Outlook
As of the end of the previous year, URW’s portfolio was valued at approximately €50 billion, with allocations of 87% in retail, 6% in offices, and 5% in convention and exhibition venues. The Group's steadfast rating of BBB+ by Standard & Poor’s and Baa2 by Moody's underlines its strong financial foundation.
Contact for Investor Relations
For inquiries regarding this issuance or any other investor relations matters, please reach out to:
Investor Relations
Meriem Delfi
+33 7 63 45 59 77
investor.relations@urw.com
Juliette Aulagnon
+33 6 15 74 20 43
investor.relations@urw.com
Frequently Asked Questions
What are the Perp-NC 5.5 Hybrid Notes?
These are deeply subordinated perpetual notes with a fixed rate coupon designed for refinancing URW’s existing debt.
Why did URW issue these hybrid notes?
The issuance aims to improve the company's financial structure by refinancing existing hybrid notes and enhancing its liquidity position.
How well was the issuance received by investors?
The issuance was oversubscribed by 3.1 times, indicating strong demand and investor confidence in URW's strategy.
What is the expected impact on URW's financial strategy?
This event strengthens URW's capital management and enhances its ability to adapt to future challenges in the real estate market.
How does URW emphasize sustainability?
URW is committed to sustainable development and urban regeneration through various initiatives that benefit the communities in which it operates.
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