By Toni Weeks
San Luis Obispo, Calif., Jan. 30 - Demire Deutsche Mittelstand Real Estate AG completed its €11.3 million issue of 6% five-year convertible bonds on Thursday, according to a company notice.
The company placed €7,279,870 of the bonds on Dec. 30. After obtaining the consent of the supervisory board, the remaining 4,020,130 convertibles were subscribed to and placed within the context of a private placement.
As previously reported, 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 have already been used for the acquisition of an office property in the Munich area in line with the company's business strategy, which is focused on investments in the German real estate market. Additional proceeds will be used to enhance financial strength.
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
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| Amount: | €11.3 million
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| Maturity: | Dec. 30, 2018
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| Coupon: | 6%
|
| Conversion price: | €1.00
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| Conversion premium: | 42.86%
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| Announcement date: | Dec. 9
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| Issue dates: | Dec. 31 for €7,279,870, Jan. 30 for €4,020,130
|
| Stock ticker: | ETR: DMRE
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| Stock price: | €0.70 at close on Dec. 6
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