Atrium European Real Estate Limited (VSE/Euronext: ATRS), a leading owner, operator and developer of retail real estate and shopping centers in Central and Eastern Europe, announces that it has successfully completed the placement of a €350 million unsecured seven year Eurobond maturing in April 2020 bearing a fixed coupon of 4.00% per annum. The issue price was 99.569%.
The order book for the issue was over €1.3 billion, representing an oversubscription of some 3.7 times. The Bond has been placed with a broad range of institutional debt investors across Europe and confirms the confidence of investors in Atrium’s credit profile.
Both Standard & Poors and Fitch have assigned a BBB- investment grade credit rating to the Bond, in line with Atrium’s own corporate rating.
The proceeds of the issue will strengthen Atrium's liquidity and will be used for general corporate purposes, including acquisitions, as and when identified, as well as the refinancing of its existing secured debt.
Commenting on the transaction, Rachel Lavine, Atrium’s chief executive, said: “The success of this issue, which has been heavily oversubscribed, is a real endorsement of the progress we have made at Atrium and provides us with substantial financial liquidity to support the Group's growth strategy. It both builds on the progress we have made, which led to achieving our investment grade ratings at the end of last year, and enables us to take advantage of the current low interest rate environment, and the highly active debt capital markets. I am very pleased with the result.”
Source: FTI Consulting