CPI Property Group - comment

Management has said it needs to issue Hybrids as it doesn’t have public equity as a currency. The Exchange Offer is attractive, and we will exchange our 3% NAV bonds. The package is worth a point; the hybrid trades at 101 + 2 points cash, less 102.25 for the new higher-coupon hybrid.

The EUR550m 4.875% Hybrids (reset date November 2025) can be exchanged for 7.5% new Hybrids (first reset March 2031). The new Hybrids will be priced at 102.25 (7% yield) and will offer a 2% cash payment for bonds tendered before 24th June. The minimum size for the new bond is €220m.

https://www.cpipg.com/storage/app/uploads/public/684/acd/ba7/684acdba70db4683713721.pdf