Grand City Properties S.A. Successfully Refinances Perpetual Notes

Grand City Properties S.A. (GCP) has announced the successful completion of a refinancing transaction involving perpetual notes. This strategic initiative includes a tender offer that aligns with the issuance of €600 million in new perpetual notes at a 4.75% coupon rate.

The refinancing effort is focused on replacing perpetual notes with higher coupon rates, leading to an expected reduction in annual coupon expenses by approximately €7 million. This move is anticipated to be beneficial for the company's credit metrics, as per S&P's evaluation.

Additionally, GCP has initiated efforts to refinance €700 million in perpetual notes with a 1.5% coupon. This includes a buyback of around €100 million of these notes, leaving €600 million outstanding.