Icade begins tender offer for mandatory convertibles

By Angela McDaniels

Seattle, Sept. 22 - Icade will begin a tender offer to purchase any of the mandatory convertible bonds due 2010 issued by its subsidiary Icade EMGP, according to a company news release.

The company will pay €916.20 per €1,000 principal amount of bonds.

The offer begins on Oct. 6 and ends on Oct. 13.

The bonds were issued in two tranches: one in April 2004 and one in November 2004. They are redeemable on May 2, 2010 at 10 Icade EMGP shares per bond.

The offer follows Icade's announcement that it will purchase €37.8 million of the bonds from Forum European Realty Income LP and €147.6 million of the bonds from City North Developments Ltd. in a private transaction on Oct. 2.

Icade will pay €916.20 per €1,000 principal amount of bonds for a total of €169.8 million and will own 99.11% of the April 2004 bonds and 97.99% of the November 2004 bonds.

Upon conversion of the bonds, Icade's stake in Icade EMGP share capital will increase to 85.85% from 72.04% on a fully diluted basis. If the company repurchases all €4.05 million of the remaining bonds during the tender offer, its stake will increase to 86.16% upon conversion.

The Boulogne-Billancourt, France-based property developer is purchasing the bonds in order to reinforce its control and exposure to Icade EMGP and to optimize its capital structure, according to the release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.