French REIT Foncière des Régions (FdR) has announced a €300 mln convertible bond issue, which may be increased to up to €345 mln depending on investor demand.
French REIT Foncière des Régions (FdR) has announced a €300 mln convertible bond issue, which may be increased to up to €345 mln depending on investor demand.
The bonds will be convertible into new shares and/or exchangeable for existing FdR (Ornane) shares, due 1 April 2019.
FdR said it will use the proceeds from the issue to refinancing existing debt for an amount of €170 mln, while a further €110 mln will be invested to buy back a portfolio of the company's Ornane 2011 shares.
Major shareholder Delfin - the holding company of Italian billionaire Leonardo Del Vecchio - does not intend to subscribe to the issue and may offer to sell part of its Ornane 2011 in the reverse bookbuilding. FdR said it is not aware of other shareholders intending to subscribe to the offering.
The bonds will bear interest from the issue date at an annual nominal rate between 0.875% and 1.625% payable semi-annually in arrears on April 1 and October 1 in each year and for the first time on 1 April 2014.
The issue is led and managed by BofA Merrill Lynch, Crédit Agricole Corporate and Investment Bank, with HSBC and Natixis acting as joint lead managers and joint bookrunners.
