new business model with two vastly oversubscribed bond issues for EUR1.1bn
Today AccorHotels successfully placed two bond issues for an amount of EUR1.1bn:
- A EUR500m perpetual hybrid bond issue with a 4.375% coupon
- A EUR600m 7-year senior bond with a 1.75% coupon
The average oversubscription of both transactions, at about 6 times, reflects investors’ very strong confidence, recognizing the Group’s new business model, growth potential and attractive risk profile.
The proceeds of these issues will be dedicated to the reimbursement of existing bonds, for which two tender offers were launched and will remain opened until Monday January 28th, 2019. Through this liability management operation, the Group will significantly extend its debt maturity, while optimizing its cost of debt, and consolidating its Investment Grade status.
The new perpetual hybrid bonds have a first call date on 30 April 2024, with a 4.375% coupon until that date. The securities will rank junior to all senior debt and they will be recognized as equity, in accordance with IFRS standards. They will be assigned “intermediate” equity content by Standard & Poors and Fitch, i.e. with 50% of the securities being accounted as equity.
Citi and BNP Paribas acted as Global Coordinators and bookrunners for the hybrid bond issue. Commerzbank, Crédit Agricole CIB, HSBC, BofA Merrill Lynch, MUFG, NatWest Markets, Santander Global Banking & Markets acted as Joint Lead Managers and bookrunners.
BNP Paribas and Crédit Agricole CIB acted as Global Coordinator and bookrunners for the senior bond issue. ING, BofA Merrill Lynch, Natixis, Société Générale Corporate & Investment Banking, UniCredit Bank acted as Joint Lead Managers and bookrunners.