By Susanna Moon
Chicago, Dec. 10 - Demire Deutsche Mittelstand Real Estate AG said it plans to issue up to €11.3 million of 6% five-year convertible bonds.
The company's executive board approved the plans on Tuesday, according to a press release.
Shareholders will be granted subscription rights for up to 9,924,750 fractional convertible bonds with a nominal value of €1.00 each.
The conversion ratio was set at 7 to 5.
Close Brothers Seydler Bank AG is the agent.
The initial conversion price is €1.00, which is a 42.86% premium to the company's closing price on Dec. 6.
Proceeds will be used to improve the company's financial strength and to acquire German real estate investments in line with its new strategy, which is focused on the German real estate market.
Demire is a Frankfurt-based real estate holding company that focuses on real estate developments in Eastern Europe.
| Issuer: | Demire Deutsche Mittelstand Real Estate AG
|
| Issue: | Convertible bonds
|
| Amount: | Up to €11.3 million
|
| Maturity: | Dec. 30, 2018
|
| Coupon: | 6%
|
| Conversion price: | €1.00
|
| Conversion premium: | 42.86%
|
| Announcement date: | Dec. 9
|
| Issue date: | Dec. 11
|
| Stock ticker: | ETR: DMRE
|
| Stock price: | €0.70 at close on Dec. 6
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