Dentons advises CPI Property Group on liability management transactions

London-Dentons has advised CPI Property Group (CPIPG) on the update of its Euro Medium Term Note Programme and two liability management transactions.

We advised CPIPG on:

• the issue of €550 million 8.500% Fixed Rate Resettable Undated Type A Subordinated Notes and its tender offer to holders of its outstanding €525 million 4.875% Fixed Rate Resettable Undated Subordinated Notes issued in 2020; and
• the issue of €550 million 5.875% Senior Unsecured European Green Bonds due 2032 and its tender offer to holders of its €600 million 7.000% Senior Unsecured Green Notes due 2029 and £400 million 4.000% Senior Notes due 2028.

These transactions form part of CPIPG's active liability management strategy and its management of its debt maturity profile. In both cases, the tender offer was structured in a way that rewarded investors who are, and wish to remain, long-term bondholders of CPIPG.

The Type A Notes, which receive 100% equity credit from Moody's (see the Dentons DCM Quick Guide: a new path to 100% equity credit corporate hybrids), form an important component of CPIPG's capital structure.

The issuance of €550 million 5.875% Senior Unsecured European Green Bonds due 2032 represents CPIPG's inaugural European green bond issue and the continuation of its sustainable financing journey - CPIPG issued its first green bond in 2019 and a sustainability-linked bond in 2022. An amount equivalent to the proceeds of the bonds will be allocated by CPIPG to activities contributing to climate change mitigation, primarily, the acquisition and ownership of buildings, in accordance with its Factsheet and the European Green Bond Regulation.

Nick Hayday, Head of Banking and Financial Services UK and Global Co-Chair of Banking and Finance, commented: "We continue to support CPIPG on its capital markets transactions. We were able to draw on experience to help CPI execute two refinancing transactions on tight timetables and in volatile market conditions."

The Dentons team was led by partners Nick Hayday and Neil Dixon, with support from associates Ed Varney and Tom Day, trainee Rakhi Gohil and solicitor apprentice Dylan Shah. Dentons Luxembourg supported, with advice provided by partner Stéphane Hadet, managing counsel Olivier Lesage and associate Yifan Zhang.

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