Following the rating upgrade to Investment Grade by Fitch and Standard & Poors, Accor has successfully placed a €500m perpetual hybrid bond issue with a 7.25 percent coupon.
The oversubscription of the transaction at about four times reflects the renewed investors’ confidence in the Group’s solid creditworthiness and growth potential.
The proceeds of this issue will be dedicated to the reimbursement of its existing hybrid bond with a first call date in January 2024, for which a tender offer was launched and will remain open until Monday, October 9th, 2023.
The new perpetual hybrid bonds have a first call date in April 2029, with a 7.25 percent coupon until that date. The securities will rank junior to all senior debt, and they will be recognized as equity, in accordance with IFRS standards. They will be assigned “intermediate” equity content by Standard & Poors and Fitch, for example, 50 percent of the securities being accounted as equity.
Citi, HSBC and SG acted as Global Coordinators for the issue, and Commerzbank, Mizuho, MUFG, Natixis, and Santander acted as Active bookrunners.
