London—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 region, on a successful tender offer and the issue of EUR525 million 4.875% undated subordinated notes callable in November 2026 (the “New Hybrids”). 

The New Hybrids were issued under CPIPG’s EUR8 billion Euro Medium Term Note (EMTN) Programme and received significant investor interest, with nearly EUR1 billion of demand. Proceeds from the New Hybrids are primarily intended for extending CPIPG's refinancing profile and further reducing gross debt.

On 8 September 2020, CPIPG announced tender offers targeting its EUR550 million 4.375% undated subordinated notes callable in 2023 (2023 Hybrids) and EUR347 million 1.45% senior notes due 2022 (2022 Notes).

On 17 September 2020, EUR328 million of the 2023 Hybrids and EUR12 million of the 2022 Notes were accepted in the tender offer. In total during 2020, CPIPG has repaid more than EUR1.2 billion of senior unsecured bonds, Schuldschein and hybrid bonds in advance of the scheduled maturity or call dates.

Martin Matula, General Counsel of CPIPG, said, “This was a complex matter, with two transactions running in parallel. We greatly appreciated the support of Dentons and are pleased to add these transactions to CPIPG’s long list of mutual success stories with Dentons.”

Nick Hayday, partner in Dentons' Capital Markets practice in London, said, "Under the cloud of COVID-19, there has never been a more important time for organisations to show financial strength and stability. This issuance and tender offer demonstrates CPIPG’s commitment to sound fiscal management and long-term growth plans, and we were delighted to once again support our client." 

Moeen Qayum, associate in Dentons' Capital Markets practice in London, said, "CPIPG is an incredibly dynamic client who has consistently demonstrated its ability to innovate in the capital markets, and we are proud to have advised CPIPG on this complex and significant transaction."

Dentons acted as English law and Luxembourg law counsel to CPIPG. The Dentons London-based Capital Markets team was led by Nick Hayday and assisted by associates Moeen Qayum and Niharika Khimji, while Luxembourg-based counsel Olivier Lesage and partner Stéphane Hadet provided Luxembourg law advice.

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