URW's Strategic Tender Offer and Hybrid Notes Issuance
Unibail-Rodamco-Westfield SE (URW) is taking significant steps by announcing a tender offer for its existing hybrid notes coupled with the issuance of new Euro-denominated hybrid notes. This initiative is set to optimize URW's extensive hybrid portfolio.
Overview of the Transaction
URW has announced its plan to issue new Euro-denominated Deeply Subordinated Perpetual Fixed Rate Resettable Perp-NC 5.5 hybrid notes, guaranteed by URW NV. Simultaneously, a tender offer is being launched on several existing notes. The existing notes affected by this tender offer include:
Existing Notes Overview
- €995,000,000 7.250% Hybrid Perp-NC 2028 notes (NC2028 Notes)
- €750,000,000 2.875% Hybrid Perp-NC 2026 notes (NC2026 Notes)
URW plans to buy back its NC2028 Notes up to the aggregate principal amount of the new notes, plus an additional €184 million. The determination concerning the maximum acceptance amount for the NC2026 Notes will be at URW's discretion.
Highlights of the Tender Offer
If at least 75% of the NC2028 Notes are validly tendered, URW is prepared to accept all valid tenders and may also execute a call option on any remaining NC2028 Notes that are not tendered. This strategic approach allows URW flexibility, as it may also engage its ‘minimal outstanding amount call option’ on the NC2025 Notes, contingent upon the overall participation in the tender offer.
The price for the new notes will be disclosed later, with expectations for the tender offer to close by 4:00 pm Paris time on a specified date. URW's focus remains on prioritizing allocations of the new notes to those NC2028 noteholders who wish to participate in the tender offer.
Transaction Rationale
This transaction is indicative of URW's commitment to proactively managing its financial landscape. By executing this tender offer, URW aims to refinance its existing hybrid notes, therefore improving their blended coupon rate and extending the average maturity period for these financial instruments.
Anticipated Credit Ratings
The newly issued notes are expected to receive a solid credit rating of BBB- from S&P and Ba1 from Moody’s, thus aligning closely with existing notes. An anticipated continuation of 50% equity content from both rating agencies is expected for any residual notes.
Impacts on URW’s Rating
URW anticipates no adverse impacts on its overall credit rating following this transaction as it seeks to maintain financial health and stability.
Tender Offer Specifics
The full details surrounding the tender offer can be found in the Tender Offer Memorandum, available upon request from BNP Paribas, which serves as the Tender and Information Agent. Interested parties can contact them directly for further engagement.
Contact Information
For inquiries related to investor relations, URW has provided key contacts:
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
Imane Rafiky
+33 6 10 95 86 88
investor.relations@urw.com
About Unibail-Rodamco-Westfield
Unibail-Rodamco-Westfield stands as a leader in owning and managing high-quality real estate. With an emphasis on sustainability, URW operates 67 shopping centers across multiple countries, attracting over 900 million visits yearly. Additionally, URW’s portfolio boasts a large pipeline of mixed-use developments and a commitment to eco-friendly urban projects through its innovative Better Places plan.
URW’s shares are actively traded on Euronext Paris (Ticker: URW) and also available as Chess Depositary Interests in Australia. The company benefits from robust ratings of BBB+ from S&P and Baa2 from Moody’s, positioning itself strongly within the real estate sector.
Frequently Asked Questions
What is the purpose of URW's tender offer?
The tender offer aims to manage and refinance URW's existing hybrid portfolio while improving the financial terms of its instruments.
What are the new hybrid notes being issued?
They are Euro-denominated Deeply Subordinated Perpetual Fixed Rate Resettable Perp-NC 5.5 hybrid notes.
How does URW plan to allocate the new notes?
URW intends to prioritize allocation to NC2028 noteholders who participate in the tender offer.
What ratings do the new notes expect to receive?
The new notes are anticipated to receive ratings of BBB- from S&P and Ba1 from Moody’s.
Where can I find more information about URW?
Further information can be found on URW's official website at www.urw.com.
