CPI Property Group - comment

The €600m of new debt to finance the tender offer for the 2.75% 2026 and 1.625% 2027 bonds (€1.24bn outstanding) will cost around 550bp more (around €33m a year in interest terms), but it will push the next large bond maturity to Jan-2028, so overall a positive. We expect a coupon of 7.5%, possibly with an OID, as CPI’s May 2029 bonds (issued this year) yield 7.2%. The tender is at a slightly higher premium for the longer-dated notes, which makes sense. The 2026/2027s will be able to exchange their bonds for a slightly higher tender price. 

https://cpipg.com/storage/app/uploads/public/66e/818/cc8/66e818cc83834892176123.pdf