Swiss Prime Site launches EUR 155m bond issue

Listed real estate company Swiss Prime Site is launching a domestic convertible bond issue due 2016 of about CHF 165 mln (EUR 135 mln). The total volume will increase to CHF 190 mln (EUR 155 mln), capped at 2.3 million shares, if the over-allotment option is exercised in full.

The bonds are convertible into registered shares. Credit Suisse is acting as sole global coordinator, and together with UBS Investment Bank, as joint bookrunner.

Swiss Prime Site said it is issuing the bonds to 'take advantage of the attractive financing opportunity' in the convertible bond market and to benefit from the favourable interest rate environment.

The proceeds will be used to refinance the outstanding CHF 175 mln 4.25% straight bond due 5 July 2011 issued by Jelmoli Holding, the former holding company of the Jelmoli group of companies, which was taken over by Swiss Prime Site in 2009.

The bonds are structured as five-year traditional convertible bonds and are marketed to investors with a coupon range of 1.625% - 2.125%, payable annually in arrears, and a conversion premium range of 12.5% - 17.5% to the volume weighted average price of the shares trading on the SIX Swiss Exchange.

Swiss Prime Site manages a CHF 8.1 bn commercial property portfolio.