REG-Grand City Properties S.A. Grand City Properties S.A. announces successful exchange and tender offer supporting credit metrics and FFO. Issuing new benchmark perpetual note.

Grand City Properties SAAnnouncement

10/04/2024 11:15

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   Grand City Properties S.A. (IRSH)
   Grand City Properties S.A. announces successful exchange and tender offer
   supporting credit metrics and FFO. Issuing new benchmark perpetual note.

   10-Apr-2024 / 12:01 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   THIS  ANNOUNCEMENT  IS  NOT  FOR  RELEASE,  PUBLICATION  OR  DISTRIBUTION,
   DIRECTLY OR INDIRECTLY, IN OR  INTO THE UNITED STATES, CANADA,  AUSTRALIA,
   JAPAN, SOUTH  AFRICA  OR ANY  OTHER  JURISDICTION  WHERE TO  DO  SO  WOULD
   CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS 

   GRAND CITY PROPERTIES S.A. ANNOUNCES SUCCESSFUL EXCHANGE AND TENDER OFFER
    SUPPORTING CREDIT METRICS AND FFO. ISSUING NEW BENCHMARK PERPETUAL NOTE.

   Luxembourg, April 10,  2024 –  Grand City  Properties S.A.  (“GCP” or  the
   “Company”) announces the successful results of voluntary exchange offer of
   two of the Company’s perpetual notes (the “Offer”).

   82% or  €449 million  of aggregate  nominal amount  of existing  perpetual
   notes were  submitted into  the offers  and subsequently  accepted by  the
   Company. As  a result,  the Company  will issue  ca. €410  million of  new
   perpetual notes  and simultaneously  repurchase  €34 million  of  existing
   perpetual notes  via  the tender  offer  (see detailed  breakdown  further
   below).

   The result of the offer supports the Company’s credit metrics under  S&P’s
   credit rating methodology as the new  notes regain the 50% equity  content
   under S&P methodology. Under IFRS and  for all bond covenants, all  notes,
   including the perpetual notes which  have not been exchanged, remain  100%
   equity. As  a result  of the  exchange and  the buyback,  GCP will  see  a
   long-term reduction in perpetual note coupon payments going forward, which
   is FFO accretive.

   Existing perpetual notes

   ISIN         Current Nominal amount      % and     Principal   Resulting
                coupon  outstanding prior   absolute  amount      nominal
                        to transaction (in  principal repurchased amount post
                        Euro million)       amount    via the     transaction
                                            accepted  tender
                                            in the    offers
                                            Offer
   XS1491364953 6.332%  200                 76% /     €13m        €48.4m
                                            €152m
   XS1811181566 5.901%  350                 85% /     €21m        €52.5m
                                            €298m
   Total                                    82% /     €34m        €100.9m
                                            €449.1m

    

   New perpetual notes

   Nominal amount Coupon First call date
   €409.5m        6.125% January 2030

    

   About the Company

   The  Company  is  a  specialist  in  residential  real  estate,  value-add
   opportunities in densely populated areas primarily in Germany and  London.
   The Company’s strategy is to  improve its properties by repositioning  and
   intensive tenant management, and then create value by subsequently raising
   occupancy      and      rental      levels.      Further      information:
   www.grandcityproperties.com

   Grand City  Properties  S.A.  (ISIN: LU0775917882)  is  a  public  limited
   liability company (société  anonyme) incorporated  under the  laws of  the
   Grand Duchy of Luxembourg, having  its registered office at 37,  Boulevard
   Joseph  II,  L-1840  Luxembourg,  Grand  Duchy  of  Luxembourg  and  being
   registered with the Luxembourg trade  and companies register (Registre  de
   Commerce et des Sociétés Luxembourg) under number B 165 560. The shares of
   the Company are listed  on the Prime Standard  segment of Frankfurt  Stock
   Exchange.

   Contact:

   Grand City Properties S.A.
   37, Boulevard Joseph II,
   L-1840 Luxembourg
   T: +352 28 77 87 86
   E: info@grandcity.lu
   www.grandcityproperties.com

    

   Investor Relations Team:

   Grand City Properties S.A.
   E:  1 gcp-ir@grandcity.lu

    

   DISCLAIMER:

   THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE 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. THERE WILL  BE NO  PUBLIC OFFERING OF  THE SECURITIES  IN THE  UNITED
   STATES.

   THIS ANNOUNCEMENT IS  DIRECTED AT  AND IS  ONLY BEING  DISTRIBUTED IN  THE
   UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN  MATTERS
   RELATING TO  INVESTMENTS FALLING  WITHIN ARTICLE  19(5) OF  THE  FINANCIAL
   SERVICES AND  MARKETS  ACT  2000 (FINANCIAL  PROMOTION)  ORDER  2005  (THE
   ORDER), (II) HIGH  NET WORTH ENTITIES,  AND OTHER PERSONS  TO WHOM IT  MAY
   OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER,
   AND (III) PERSONS TO WHOM IT  MAY OTHERWISE LAWFULLY BE COMMUNICATED  (ALL
   SUCH PERSONS  TOGETHER  BEING  REFERRED  TO  AS  RELEVANT  PERSONS).  THIS
   COMMUNICATION MUST NOT BE READ, ACTED ON  OR RELIED ON BY PERSONS WHO  ARE
   NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH  THIS
   ANNOUNCEMENT RELATES IS  AVAILABLE ONLY  TO RELEVANT PERSONS  AND WILL  BE
   ENGAGED IN ONLY WITH RELEVANT PERSONS.

   IN MEMBER STATES OF  THE EUROPEAN ECONOMIC  AREA (EEA), THIS  ANNOUNCEMENT
   AND ANY OFFER  IF MADE SUBSEQUENTLY  IS DIRECTED ONLY  AT PERSONS WHO  ARE
   “QUALIFIED INVESTORS” WITHIN THE MEANING  OF ARTICLE 2(1)(E) OF  DIRECTIVE
   2003/71/EC, AS AMENDED (THE  PROSPECTUS DIRECTIVE) (QUALIFIED  INVESTORS).
   ANY PERSON  IN  THE EEA  WHO  ACQUIRES THE  SECURITIES  IN ANY  OFFER  (AN
   INVESTOR) OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO
   HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY  INVESTOR
   WILL ALSO BE  DEEMED TO HAVE  REPRESENTED AND AGREED  THAT ANY  SECURITIES
   ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN
   THE EEA  OTHER THAN  QUALIFIED  INVESTORS, NOR  HAVE THE  SECURITIES  BEEN
   ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA TO PERSONS  WHERE
   THIS WOULD RESULT IN A REQUIREMENT  FOR PUBLICATION BY THE COMPANY OR  ANY
   OF THE MANAGERS OF  A PROSPECTUS PURSUANT TO  ARTICLE 3 OF THE  PROSPECTUS
   DIRECTIVE.

   THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS  OR ESTIMATES RELATING TO  PLANS
   AND OBJECTIVES RELATING TO OUR  FUTURE OPERATIONS, PRODUCTS, OR  SERVICES,
   FUTURE FINANCIAL RESULTS,  OR ASSUMPTIONS  UNDERLYING OR  RELATING TO  ANY
   SUCH STATEMENTS,  EACH OF  WHICH CONSTITUTES  A FORWARD-LOOKING  STATEMENT
   SUBJECT TO RISKS AND UNCERTAINTIES, MANY  OF WHICH ARE BEYOND THE  CONTROL
   OF THE COMPANY.  ACTUAL RESULTS  COULD DIFFER MATERIALLY,  DEPENDING ON  A
   NUMBER OF FACTORS.

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          LU0775917882, LU0775917882 , XS1491364953, XS1811181566,
                  XS2271225281, XS1220083551, XS1654229373, XS1706939904,
                  XS1706939904, XS1763144604, XS1781401085, CH0401956872,
                  XS1827041564, XS1851265527, XS1953786222, XS1964638446,
                  CH0482172415, XS2016885159, XS2033380820, XS2035328223,
                  XS2154325562, XS2282101539,
   Category Code: MSCL
   TIDM:          IRSH
   LEI Code:      5299002QLUYKK2WBMB18
   Sequence No.:  314836
   EQS News ID:   1877611


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:gcp-ir@grandcity.lu


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