Aroundtown SA decides not to exercise its option to voluntarily call EUR 369 million 3.75 % Perpetuals Notes with call date in January 2023 issued by ATF Netherlands B.V.

Public disclosure of inside information according to Article 17 para. 1 of the Regulation (EU) No 596/2014 on market abuse (market abuse regulation – MAR)

Issuer:   Aroundtown SA

              ATF Netherlands B.V.

Aroundtown decides not to exercise its option to voluntarily call EUR 369 million 3.75 % Perpetuals Notes with call date in January 2023 issued by ATF Netherlands B.V.

Luxembourg, 29 November 2022 - The board of directors (the “Board”) of Aroundtown SA (the “Company” or “Aroundtown”) has decided today that its subsidiary ATF Netherlands B.V. as issuer will not exercise the option to voluntarily redeem the EUR 600 million 3.75% undated subordinated notes of which EUR 369 million are outstanding, subject to interest rate reset with a first call date on 20 January 2023 (ISIN XS1508392625) (“Perpetuals”) on such first call date. The decision is an economic decision and reflects the current market conditions. The increased financing rates of a new perpetual note to be potentially used as a replacement of the Perpetuals, are significantly higher than the step-up rate provided for in the terms and conditions of the Perpetuals, making a redemption at this point uneconomical. The decision reflects Aroundtown’s strategy in the current volatile market environment to maintain high liquidity balance, low LTV-ratio and high headroom to its debt covenants. The Perpetuals will continue to be accounted as equity under IFRS accounting and for the calculation of financial covenants of Aroundtown’s senior bonds. Aroundtown has the option to call the Perpetuals at every future interest payment date. The Company does not expect its credit rating of BBB+ from S&P to be negatively impacted due to this decision. As stipulated in the terms and conditions of the Perpetuals, the coupon for the period starting from 20 January 2023 will be the five-year swap rate plus a margin of 4.375% per annum. A potential option to defer the coupon payments will be considered closer to the respective interest payment date. The decision on Aroundtown’s other perpetual notes is to be evaluated closer to their respective optional call date, and will take into consideration the market conditions at that time. The Company remains committed to retain perpetual notes as part of its long-term financial structure.

Contact

Timothy Wright

T: +352 288 313

E: [email protected]
www.aroundtown.de

Important information:

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities mentioned in this announcement have not been and will not be registered under the United States Securities act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act.

If any announcements in this document contain forward-looking statements, such statements do not represent facts and are characterized by the words 'will', 'expect', 'believe', 'estimate', 'intend', 'contemplate', 'aim', 'assume' or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of Aroundtown and the persons acting together with Aroundtown. Such forward-looking statements are based on current plans, estimates and forecasts which Aroundtown and the persons acting together with Aroundtown have made to the best of their knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by Aroundtown or the persons acting together with Aroundtown. It should be kept in mind that the actual events or consequences may differ materially from those contained in or expressed by such forward-looking statements.