Dentons has advised CPI Property Group (CPIPG), the leading owner of income-generating real estate in the Czech Republic, Berlin and the Central and Eastern Europe (CEE) region, on a successful tender offer of outstanding bonds due in 2026, 2027 and 2028.

The tender offer, which was announced by CPIPG on 4 April 2023, invited holders of its outstanding €750 million 2.750% Senior Notes due 2026, €750 million 1.625% Senior Notes due 2027 and £400 million 2.750% Senior Notes due 2028 to tender their Notes through an unmodified Dutch auction procedure for purchase by CPIPG for cash. The rationale for the tender offer was to reduce CPIPG’s total debt and to decrease the volume of its outstanding senior unsecured bonds. Banco Santander S.A., MUFG Securities (Europe) N.V., Société Générale and UniCredit Bank AG acted as the dealer managers on the tender offer.

The tender offer demonstrates CPIPG’s proactive approach to debt management and commitment to future growth. CPIPG intends to continue with its active disposal programme in the future and remains focused on using excess liquidity to reduce leverage and support its bonds in the secondary market.

The equivalent of approximately €700 million was tendered. Because of the success of the offer, CPIPG accepted nearly €335 million (converted into the euro equivalent where applicable) of tenders, an increase of 34% above its initial tender acceptance amount. “We are delighted with the engagement of our bondholders in this process,” said David Greenbaum, CFO. “The higher acceptance amount reflects CPIPG’s desire to support our bondholders and reduce leverage through the proactive repayment of medium-term bond maturities.”

Nick Hayday, partner in Dentons’ Debt Capital Markets practice in London who led on the transaction, said: “CPIPG is committed to long-term growth and proactively managing its maturity profile. We are proud to support this exciting and dynamic client.”

Dentons acted as English law and Luxembourg law counsel to CPIPG. The Dentons London-based Debt Capital Markets team was led by Nick Hayday and senior associate Victoria Wyer, with assistance from associate Zeeshan Hussain, while Luxembourg-based counsel Olivier Lesage, partner Stéphane Hadet and associate Pierre Hever provided Luxembourg law advice.