French retail specialist Klépierre has announced the issue of a 15-year, €500 mln bond maturing December 13, 2032.
The bond was priced at 50 basis points above the swap rate, the tightest spread ever for a European REIT for a 15-year maturity or longer, the French REIT said in a statement. It translates into a coupon of 1.625%.
The bond was oversubscribed 2.4 times, with the notes being placed with high-quality, long-term global investors, notably from Germany (41% of the allocated book), France (33%) and the UK (18%).
BNP Paribas, Crédit Agricole CIB, HSBC, ING, Mizuho International and Natwest Market acted as joint-bookrunners for the new issue.
In addition, Klépierre launched a cash tender offer for four outstanding bonds, a €500 mln bond (of which €309.9 mln currently outstanding) maturing in September 2019 and offering a 2.75% coupon; a €500 mln bond (of which €324.6 mln currently outstanding) maturing in February 2021 and offering a 3.25% coupon; a €600 mln bond maturing in March 2021 and offering a 4.75% coupon; an €85 mln bond maturing in December 2022 and offering a 3.516% coupo.
The offer period for the tendered bonds is expected to end on December 6, 2017. Natixis, Natwest Market and Société Générale CIB are acting as dealer managers in the tender offer.
Klépierre said that the transactions support its financing strategy, which aims to reduce financing costs while extending the average maturity of its debt.
