Corestate Capital talks €150 million five-year convertibles at 1% to 1.75%, up 25% to 30%

By Abigail W. Adams

Portland, Me., Nov. 21 – Corestate Capital Holding SA is talking a €150 million offering of five-year convertible bonds (expected: BB+) at a coupon of 1% to 1.75% and an initial conversion premium of 25% to 30%.

The deal carries a greenshoe of €50 million.

Pricing is expected Tuesday.

The convertible bonds will be non-callable until Dec. 19, 2020 and then become provisionally callable subject to a 130% hurdle. There is a clean up call if 15% or less of the principal amount of the notes is outstanding, according to a company release.

Shareholders’ pre-emptive rights are excluded, Corestate said.

The convertible bonds will be traded on the Open Market of the Frankfurt Stock Exchange and are only open to institutional investors outside the United States, Australia, Canada, Italy, and Japan, according to a company release.

Proceeds of the deal will be used to refinance existing debt and for general corporate purposes.

Corestate is a Luxemburg-based investment manager with €22 billion in assets under management.

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