REG-Grand City Properties S.A. ​​​​​​​Grand City Properties S.A. decides not to exercise its option to voluntarily call EUR 200 million 2.75% Perpetual Notes with call date in January 2023

Grand City Properties SAAnnouncement

29/11/2022 07:45

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   Grand City Properties S.A. (IRSH)
   ​​​​​​​Grand City Properties S.A. decides not to exercise its option to
   voluntarily call EUR 200 million 2.75% Perpetual Notes with call date in
   January 2023

   29-Nov-2022 / 08:38 CET/CEST
   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   Public disclosure of inside information according to Article 17 para. 1 of
   the Regulation (EU) No 596/2014 on market abuse (market abuse regulation –
   MAR)

   Grand  City  Properties  S.A.  decides  not  to  exercise  its  option  to
   voluntarily call EUR 200 million 2.75%  Perpetual Notes with call date  in
   January 2023

   Luxembourg, 29 November  2022 - The  board of directors  (the “Board”)  of
   Grand City Properties S.A. (the “Company” or “GCP”) has decided today  not
   to exercise the  option to voluntarily  redeem the EUR  200 million  2.75%
   undated subordinated notes  subject to  interest rate reset  with a  first
   call date on 22  January 2023 (ISIN  XS1491364953) (“Perpetuals”) on  such
   first call  date.  As  stipulated  in the  terms  and  conditions  of  the
   Perpetuals, the  coupon  for the  new  interest period  starting  from  22
   January 2023 will be the five-year swap  rate plus a margin of 3.637%  per
   annum. A potential option to defer the coupon payments will be  considered
   closer to the respective interest payment date. Going forward, the Company
   will have the option to voluntarily redeem the Perpetuals at every  future
   interest payment date.

   The decision is based on economic considerations and reflects the  current
   market conditions. Because financing rates currently available for  issues
   of new perpetual notes are  significantly less favorable than the  step-up
   rate provided  for  in the  terms  and  conditions of  the  Perpetuals,  a
   potential replacement  of  the  Perpetuals with  new  perpetual  notes  is
   economically not feasible. The decision is in line with GCP’s strategy  to
   preserve cash,  maintain  low LTV-ratio  and  high headroom  to  its  debt
   covenants in the current volatile market environment. The Perpetuals  will
   continue to  be accounted  as equity  under IFRS  accounting and  for  the
   calculation of financial covenants of GCP’s senior bonds. The Company does
   not expect its credit  rating of BBB+ from  S&P to be negatively  impacted
   due to this decision  and remains committed to  retain perpetual notes  as
   part of  its  long-term financial  structure.  The Company  will  evaluate
   potential call options  under its  other perpetual notes  closer to  their
   respective  optional  call  dates   considering  then  prevailing   market
   conditions.

   Contact

   Michael Bar-Yosef
   T: +352 28 77 87 86
   E: info@grandcity.lu
   www.grandcityproperties.com

   Important information:

   This announcement does not constitute an  offer to sell or a  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.

   If any announcements in this document contain forward-looking  statements,
   such statements do not represent facts and are characterized by the  words
   'will', 'expect', 'believe',  'estimate', 'intend', 'contemplate',  'aim',
   'assume' or similar expressions.  Such statements express the  intentions,
   opinions or current expectations and assumptions of Grand City  Properties
   S.A. and the persons acting together with Grand City Properties S.A.. Such
   forward-looking statements  are  based  on current  plans,  estimates  and
   forecasts which Grand City Properties S.A. and the persons acting together
   with Grand City Properties S.A. have made to the best of their  knowledge,
   but which  do not  claim  to be  correct  in the  future.  Forward-looking
   statements are subject to  risks and uncertainties  that are difficult  to
   predict and usually cannot be influenced by Grand City Properties S.A.  or
   the persons acting together with Grand City Properties S.A.. It should  be
   kept in mind that the actual events or consequences may differ  materially
   from those contained in or expressed by such forward-looking statements.

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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: UPD
   TIDM:          IRSH
   LEI Code:      5299002QLUYKK2WBMB18
   Sequence No.:  204523
   EQS News ID:   1499849


    
   End of Announcement EQS News Service

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