By Stephanie N. Rotondo
Seattle, Jan. 20 – Immofinanz AG wrapped a €297.2 million placement of 2% convertible bonds due 2024 at par with an initial conversion premium of 30% on Friday, according to a press release.
Deutsche Bank Securities and J.P. Morgan Securities LLC were the joint bookrunners.
The deal came at the cheap end of talk for a coupon of 1.375% to 2% and an initial conversion premium of 30% to 40%.
The bonds are convertible into no-par value bearer shares of Immofinanz at an initial conversion price of €2.3933, a 30% premium over the €1.8410 reference share price.
The amount sold included exercise of the company’s option to increase the amount by €100 million from the originally announced €200 million.
The convertible bond offering was done in connection with an incentivized conversion invitation on the company’s 4.25% senior convertible bonds due 2018. Part of the new deal’s proceeds will be used to fund the conversion.
Following completion of the buyback, Immofinanz trimmed the final size to €297.2 million from €300 million but said there would be no clawback. Instead the underwriters will “make necessary adjustments.”
The interest rate has a step-down feature, in which the rate can decrease by 0.5% in the event the company achieves an investment grade rating from any of S&P Global Ratings, Fitch Ratings or Moody’s Investors Service.
The notes are putable after five years at par.
In addition to funding the buyback, proceeds will also be used to refinance existing debt and for general corporate purposes.
Immofinanz is a Vienna, Austria-based commercial real estate company.
| Issuer: | Immofinanz AG
|
| Securities: | Convertible bonds
|
| Amount: | €297.2 million
|
| Maturity: | 2024
|
| Bookrunners: | Deutsche Bank Securities, J.P. Morgan Securities LLC
|
| Lead managers: | Erste Group Bank, Raiffeisen Bank International, UniCredit Bank
|
| Coupon: | 2%
|
| Price: | Par of €100,000
|
| Yield: | 2%
|
| Conversion premium: | 30%
|
| Conversion price: | €2.3933
|
| Put options: | In 2022 at par
|
| Pricing date: | Jan. 12, after close
|
| Settlement date: | Jan. 24
|
| Talk: | 1.375% to 2%, up 30% to 40%
|
| Stock symbol: | VIE: IIA
|
| Reference stock price: | €1.72
|
| Market capitalization: | €1.68 billion
|
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