Wereldhave places EUR 230m convertible bond issue

Dutch real estate group Wereldhave announced the successful placing of EUR 200 mln of senior unsecured convertible bonds on Thursday. Joint bookrunners Barclays Capital and UBS Investment Bank notified Wereldhave that they intended to exercise the EUR 30 mln increase option, bringing the total to EUR 230 mln.

Wereldhave said the bonds due in 2014 were successfully priced at 'the best end' of the indicative terms for Wereldhave.

Speaking to PropertyEU, corporate treasurer Charles Bloema stressed the company has a good balance sheet. He said the net proceeds would therefore be used for acquisitions. The acquisitions will mainly be in the UK, France and Spain, countries which make up a lower proportion of Wereldhave's portfolio than the US (25%).

Bloema said the company would target initial yields of 6.5% or above for its acquisitions.

The bonds will be issued at 100% of their principal amount and will have a coupon of 4.375% per annum payable semi-annually in arrear. The conversion price is EUR 72.184, a premium of approximately 15% above the volume-weighted average price of the ordinary shares of Wereldhave on Euronext Amsterdam during the course of the day up to the time of pricing.

The shares to be issued upon conversion of the bonds will represent approximately 15% of Wereldhave's currently issued share capital.

Wereldhave operates in several European countries and in the US. The company's shares are traded on NYSE Euronext Amsterdam and Paris.