By Susanna Moon
Chicago, Dec. 31 - Demire Deutsche Mittelstand Real Estate AG said it had placed €7,279,870 of 6% five-year convertible bonds by Monday.
The company planned to issue up to €11.3 million of the convertibles, as announced Dec. 10, and will sell 4,020,130 more fractional convertible bonds by way of private placement through the end of January, according to a press release.
Of the remainder, 727,280 fractional convertibles were subscribed for by shareholders through an indirect subscription offer from Dec. 11 to Dec. 27. Shareholders with subscription rights for 5,177,340 fractional convertible bonds have transferred their subscription rights to investors. These fractional convertibles were fully subscribed for by way of a private placement. In addition, 1,375,250 fractional convertibles were issued excluding the subscription rights of the shareholders by way of a private placement.
The company's executive board approved the plans on Dec. 10, as previously announced.
Shareholders were 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 was €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: | €7,279,870
|
| Maturity: | Dec. 30, 2018
|
| Coupon: | 6%
|
| Conversion price: | €1.00
|
| Conversion premium: | 42.86%
|
| Announcement date: | Dec. 9
|
| Issue date: | Dec. 31 for €7,279,870
|
| Stock ticker: | ETR: DMRE
|
| Stock price: | €0.70 at close on Dec. 6
|
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