By Abigail W. Adams
Portland, Me., Aug. 20 – TAG Immobilien AG priced €470 million six-year convertible bonds on Thursday at par at the midpoint of talk with a coupon of 0.625% and an initial conversion premium of 35%, according to a market source.
Price talk was for a coupon of 0.375% to 0.875% and an initial conversion premium of 32.5% to 37.5%.
Jefferies International Ltd. and Goldman Sachs International were joint global coordinators and bookrunners for the Regulation S offering. Societe Generale is also a bookrunner.
The initial size of the offering was €450 million.
The bonds are non-callable until Aug. 27, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
Concurrently, the company is repurchasing a portion of its convertible bonds due 2022.
Proceeds will be used to finance acquisitions in Germany of 4,200 units for €163 million, to reduce dilution from the existing convertible bonds and for general corporate purposes.
TAG Immobilien is a Hamburg, Germany-based property company.
| Issuer: | TAG Immobilien AG
|
| Securities: | Convertible bonds
|
| Amount: | €470 million
|
| Maturity: | Aug. 27, 2026
|
| Bookrunners: | Jefferies International Ltd., Goldman Sachs International and Societe Generale
|
| Coupon: | 0.625%
|
| Price: | Par
|
| Yield: | 0.625%
|
| Conversion premium: | 35%
|
| Call options: | Non-callable until Aug. 27, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Aug. 20
|
| Settlement date: | Aug. 27
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 0.375% to 0.875% and initial conversion premium of 32.5% to 37.5%
|
| Stock symbol: | ETR: TEG
|
| Stock price: | VWAP of Aug. 20 and Aug. 21
|
| Market capitalization: | €3.73 billion
|
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