By Rebecca Melvin
New York, Sept. 3 – Deutsche Wohnen AG priced €400 million of seven-year convertible bonds at par of €100,000 Wednesday to yield 0.875% with an initial conversion premium of 27.5%, according to a news release.
The Regulation S bonds priced at the cheap end of talked terms, which was for a 0.375% to 0.875% coupon and a 27.5% to 32.5% premium.
The bonds are non-callable until Oct. 8, 2018 and then provisionally callable if shares rise to at least 130% of the conversion price. Holders can put the bonds on Sept. 8, 2019.
Goldman Sachs International and UBS Investment Bank were the joint bookrunners of the deal.
About €100 million of proceeds will be used to cover one-time costs of refinancing bank loans, up to €150 million will be earmarked for partial debt retirement or repayment of bank loans and at least €150 million will be used for investments in real estate and general business purposes.
Frankfurt-based Deutsche Wohnen is a residential property developer.
| Issuer: | Deutsche Wohnen AG
|
| Issue: | Convertible bonds
|
| Amount: | €400 million
|
| Maturity: | September 2021
|
| Bookrunners: | Goldman Sachs International and UBS Investment Bank
|
| Coupon: | 0.875%
|
| Price: | Par, €100,000
|
| Yield: | 0.875%
|
| Conversion premium: | 27.5%
|
| Conversion price: | €22.1016
|
| Calls: | Non-callable until Oct. 8, 2018, then provisionally callable at 130% price hurdle
|
| Puts: | Sept. 8, 2019
|
| Price talk: | 0.375%-0.875%, up 27.5%-32.5%
|
| Pricing date: | Sept. 3
|
| Settlement date: | Sept. 8
|
| Stock reference price: | €17.3346
|
| Distribution: | Regulation S
|
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