Shearman & Sterling advised Citycon Oyj in connection with an offering of €300 million 2.375 per cent Guaranteed Notes due 2022 (the “Notes”). The Notes were issued by Citycon’s wholly-owned subsidiary Citycon Treasury B.V. and guaranteed by Citycon.
The net proceeds of the issue of the Notes will mainly be used by Citycon Treasury B.V. for the repayment of bridge debt relating to Citycon’s recent acquisition of the Norwegian shopping center company Sektor Gruppen AS (“Sektor”) by lending to companies within the group to prepay in part the existing indebtedness of Sektor. Citycon Treasury B.V. may also lend part of the proceeds of the issue of the Notes to Citycon to be used for general corporate purposes, including to repay existing indebtedness, for the development of existing properties, to acquire new properties or to increase its shareholdings in its existing joint ventures.
Citycon is a leading owner, manager and developer of urban grocery-anchored shopping centers in the Nordic and Baltic region. Citycon has a market capitalization of approximately €2.0 billion and total assets under management of approximately €5.0 billion. It is the number one shopping center owner in Finland and Estonia and one of the market leaders in Sweden, and has also established a foothold in Denmark.
The Shearman & Sterling team of lawyers in the firm’s London office was led by Capital Markets partner David Dixter and included associates Ellen Shiels and Elena Dzhurova, Tax counsel Simon Letherman and associate Gabriel Ng.