Deutsche EuroShop plans €100 million five-year convertibles to yield 1%-1.75%, up 20%-25%

By Rebecca Melvin

New York, Nov. 13 - Deutsche EuroShop AG plans to price €100 million of five-year convertible bonds at par that were talked to yield 1% to 1.75% with an initial conversion premium of 20% to 25%, according to a news release.

The Regulation S offering was expected to price on Wednesday.

The company will also increase its share capital through partial use of authorized capital by up to €2.55 million by issuing up to 2,553,876 new no-par value registered shares.

The new shares represent about 4.95% of the current share capital. Shareholders' subscription rights will be excluded. The new shares will be offered only to qualified investors in Germany, the rest of Europe and certain other jurisdictions by way of an accelerated bookbuilding.

Proceeds will be used to finance a shopping center acquisition in Germany for about €160 million to €190 million.

The company plans to apply for the inclusion of the bonds to trading on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange.

Hamburg, Germany-based Deutsche EuroShop is a real estate investment company.

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