By Stephanie N. Rotondo
Seattle, Aug. 23 – TAG Immobilien AG sold €262 million of 0.625% convertible bonds due 2022 with an initial conversion premium of 30%, the company said in a press release on Wednesday.
Pricing came at the cheap end of the 0.125% to 0.625% yield talk and the 30% to 35% conversion premium talk.
The company initially said it would sell up to €277 million of the convertibles.
Deutsche Bank was the sole global coordinator. The firm was joined by Berenberg and Credit Suisse as bookrunners. The convertibles were sold to institutional investors.
Conversions will be settled with new or existing TAG bearer shares or in cash. The initial conversion price is €17.9331 a share.
The bonds become redeemable on Sept. 1, 2020 if the stock price hits a 130% price hurdle or if less than 20% of the issue remains outstanding.
Proceeds will be used for general corporate purposes, including the refinancing of existing indebtedness.
TAG Immobilien is a Hamburg-based property investment company.
| Issuer: | TAG Immobilien AG
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| Securities: | Convertible bonds
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| Amount: | €262 million
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| Maturity: | Sept. 1, 2022
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| Coupon: | 0.625%
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| Price: | Par of €100,000
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| Yield: | 0.625%
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| Initial conversion price: | €17.9331 a share
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| Initial conversion premium: | 30%
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| Provisional call: | On or after Sept. 1, 2020 at par if the stock hits a 130% price hurdle, or clean up call if there is less than 20% of the issue remaining outstanding
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| Pricing date: | Aug. 23
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| Settlement date: | Sept. 1
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| Bookrunners: | Deutsche Bank, Berenberg and Credit Suisse
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| Talk: | 0.125% to 0.625%, up 30% to 35%
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| Stock symbol: | Frankfurt: TEG
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| Reference price: | €11.65
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| Stock price: | €13.86 as of Aug. 23 close
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| Market capitalization: | €2.03 billion
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