ParqueSur Shopping Centre in Madrid
This operation will not only «strengthen its liquidity position» but will also be «extending the Group’s debt maturity», revealed the release issued last Friday, marked by the closure of the two-tranche senior bond operation.
Half the capital has a 6 year and 5 months maturity and a 0.625% fixed coupon. And the other half has an 11-year maturity and a 1.375% fixed coupon. Both represent a «successful issuance that was more than three times oversubscribed, attracting over 6.5 billion euro in demand», revealed URW.
Simultaneously, URW also issued «a tender offer for an aggregate principal amount of up to 1 billion euro across five outstanding bonds, which have a total principal amount of 2.8 billion euro and maturity dates ranging from February 2021 to February 2024». The results of this offer will be announced this Wednesday.
«The net proceeds from this issuance will be used for general corporate purposes, including the funding of the concurrent tender offer and the refinancing of upcoming bond maturities», added URW.
This was the solution presented by the French giant after its shareholders rejected a 3.5 billion euro capital increase operation, which, according to daily newspaper Eje Prime, generated instability within the board and led to the resignation of the company’s CEO Christophe Cuvillier, as well as that of CFO Jaap L. Tonckens.
URW currently has a portfolio estimated at 58.3 billion euro, of which 86% in retail, 7% in offices, 5% in convention & exhibition venues and 2% in services. Currently, the Group owns and operates 89 shopping centres, including 55 Flagships, which are spread across 12 countries, one of them is Spain, where it holds a total of 8 shopping centres, amongst which the ParqueSur in Madrid and the Glòries in Barcelona.