Austrian listed property group Conwert Immobilien Invest has initiated a two-step transaction designed to reduce its leverage and extending the maturity profile of its debt.
Austrian listed property group Conwert Immobilien Invest has initiated a two-step transaction designed to reduce its leverage and extending the maturity profile of its debt.
The transaction comprises an invitation by Conwert to the holders of its outstanding 1.5% convertible bonds due 2014 to tender bonds for cash. At the same time, Conwert is launching an offering of senior convertible bonds in an aggregate amount of EUR 80 mln, due 2018.
For each EUR 100,000 principal amount of 2014 bonds validly tendered by holders and accepted by Conwert, the company will pay a purchase price of EUR 108 plus interest accrued up to (but excluding) the settlement date.
Tenders of 2014 bonds may be submitted in the period from 30 August 2012 until 5 September 2012.
The 2018 bonds will have a maturity of six years. The 2018 bonds will be offered in denominations of EUR 100,000 at an issue price of 100%. The 2018 bonds are expected to pay a semi-annual coupon in the range of 4% - 4.50% per annum, and the initial conversion price is expected to be set at a premium of between 30% - 35% above the volume weighted average price of the Conwert shares during the bookbuilding period.
Barclays is acting as sole bookrunner of the offering and as dealer manager in the invitation. Raiffeisen Centrobank is acting as co-lead manager of the offering and Lucid Issuer Services is acting as tender agent in the invitation.
