Austrian listed property firm Immofinanz has priced a €375 mln bond issue exchangeable into shares of its residential unit, Buwog.
Austrian listed property firm Immofinanz has priced a €375 mln bond issue exchangeable into shares of its residential unit, Buwog.
The bonds had a coupon of 1.5% per annum and an exchange premium of 15%. The reference share price will represent the volume weighted average price of the Buwog´s shares on the Vienna Stock Exchange between market open and close of trading on 4 September 2014.
The bonds will be issued and redeemed at 100% of their principal amount and will mature on 11 September 2019.
Bondholders will be entitled to have their bonds redeemed at their principal amount plus accrued interest on 11 September 2017.
Immofinanz plans to use the proceeds to repay existing financings, as well as to invest in its portfolio or in opportunistic growth opportunities as well as for general corporate purposes.
Immofinanz holds a 49% stake in Buwog following the spin-off carried out in April. The company plans to sell down this investment over the medium-term.
BNP Paribas, J.P. Morgan and Morgan Stanley are acting as Joint Bookrunners.
´These exchangeable bonds will release a significant part of the liquidity tied up in our Buwog shares for alternative uses. However, we will also retain full flexibility with regard to the future use of these shares and benefit from planned dividend payments by Buwog up to any exchange date. The favourable terms achieved on the issue will substantially reduce our financing costs after we – as planned – have repaid more expensive financings,´ Immofinanz CEO Eduard Zehetner said.