Paris-based AccorHotels is planning an issuance of new hybrid bonds for an expected amount of €500.0 million and benchmark-sized senior bonds.
The undated noncall 5.25-year hybrid bonds will be deeply subordinated and offer a fixed-to-reset rate with a first call date in April 2024 at the company's option. The senior bonds will mature in February of 2025 or 2026.
AccorHotels also launched two tender offers involving its six-year hybrid bonds issued June 30, 2014, and 2.625% senior bonds due Feb. 5, 2021, each in the aggregate principal amount of €900.0 million. The two bonds, which remain outstanding in full, are listed on the Luxembourg Stock Exchange. The hotelier is seeking to accept the six-year hybrid bonds in the maximum amount equal to the aggregate principal amount of the new hybrid bonds. The maximum acceptance amount of the senior bonds due 2021 will be determined after the pricing of the new senior bonds.
AccorHotels aims to exchange the existing senior bonds, acquired by Crédit Agricole Corporate and Investment Bank in the tender offer, with the new senior bonds. Any proceeds remaining from the issuance of the new senior bonds will be used for general corporate purposes and the refinancing of the outstanding amount of the €600.0 million 2.500% bonds due March.
Conditional results of the tender offers will be announced Jan. 29, subject to any extension, withdrawal, termination or amendment of the offers. The new bonds will be admitted to trading on Euronext Paris, according to the release.