Bond investors renew confidence in Accor business model and credit profile

Today Accor successfully placed a EUR500m perpetual hybrid bond issue with a 2.625% coupon.

The oversubscription of the transaction at about 6 times reflects a renewed investors’ confidence, recognizing the Group’s transformation objective, growth potential and attractive risk profile.

The proceeds of this issue will be dedicated to the reimbursement of its existing hybrid bond with a first call date in June 2020, for which a tender offer was launched and will remain open until Tuesday October 29^th, 2019.

The new perpetual hybrid bonds have a first call date on 30 April 2025, with a 2.625% 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, i.e. with 50% of the securities being accounted as equity.

Citi and Crédit Agricole CIB acted as Global Coordinators and bookrunners for the hybrid bond issue. Barclays, BNP Paribas, HSBC, MUFG, Natixis, NatWest Markets and Société Générale Corporate & Investment Banking acted as Joint Lead Managers and bookrunners.

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