Immofinanz has announced a €300 mln issue of convertible bonds with a denomination of €100,000 each, due 2024. The issue was increased from an initial €200 mln.
The bonds will have a coupon rate of around 2% per year. The final issue size will depend on the acceptance rate of a conversion offer for its outstanding €515.1 mln of convertible bonds due 2018, which was announced on January 12th.
According to Immofinanz, an approximately 43% success rate of the conversion offer will be required for the €300 mln of new bonds to be issued.
The bonds will have a maturity of seven years, an investor put option after five years and will be issued and redeemed at 100% of their principal amount. Pre-emptive rights of existing shareholders to subscribe to the bonds have been excluded.
Immofinanz said that the proceeds would be used to finance a portion of the conversion offer, refinance existing debt and for general corporate purposes.
Settlement of the convertible is expected to take place on or around 24 January 2017, alongside the incentivised conversion.
Deutsche Bank and JP Morgan acted as joint global coordinator and joint bookrunners and Erste Group Bank, Raiffeisen Bank International and UniCredit Bank were acting as co-lead managers.
