TAG Immobilien plans €30 million convertibles to yield 5.5%-6.5%

By Susanna Moon

Chicago, April 15 - TAG Immobilien AG said it plans to issue up to €30 million of convertible bonds.

The coupon will be 5.5% to 6.5% per year over a term of five years.

The conversion price has been set at €5.47, which is 130% of the reference price. The company's stock (Frankfurt: TEG) closed at €4.20 on Wednesday.

Shareholders will be granted a right to subscribe to the convertible bonds, which will be denominated in units of €100.00, on a 1-for-117 basis.

The separate subscription offer will be published in the week beginning April 19, with the subscription period to last for two weeks.

The bonds will be listed in the open market of the Frankfurt Stock Exchange.

Proceeds of the issue will be used to fund future investments.

Close Brothers Seydler Bank AG, Frankfurt am Main, is the lead manager and bookrunnern.

TAG said the management board passed a resolution on Thursday to sell the notes based on the authorization granted at TAG's annual general meeting on Aug. 27, 2009.

TAG Immobilien a Hamburg, Germany, property investment company.

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