Aroundtown (ARNDTN; NR, BBB+ Neg) {AT1 GY Equity}

• The relatively high take up at 74% a slight negative given exchange fees (S&P saw up to €105m)
• Cash use on tender (option 2) does not seem large at €136m
• Company says net long-term reduction in perpetual coupon payments & therefore FFO accretive
• Regardless we expect positive reaction from S&P (initial was positive from them/ratings unch) given 50% equity consideration on new €1.6b perps
• Its initial take did not include earnings which was in-line with its expectations outside a miss on higher property devaluation (-11% vs. -7-8%)

Our view was short-end screens well cheap (on ample liquidity) after earnings - July 26's have since come in 50bps since, we keep the view unch/healthy carry still at Z+193/€89.5.

"74% or ca. €1.8 billion aggregate nominal amount of existing perpetual notes were submitted into the Offers and accepted by the Group. As a result, the Group will issue ca. €1.6 billion of new perpetual notes across three different series and simultaneously repurchase €136 million of perpetual notes via the tender offer (see detailed breakdown further below)."