Wereldhave opts to skip buyback of €230 million 2.875% convertibles

By Susanna Moon

Chicago, Nov. 25 - Wereldhave NV said it decided against repurchasing its €230 million of outstanding 2.875% convertible bonds due 2015 in the open market and pulled plans for a new issue.

Funding for the repurchases would have come from proceeds of new €200 million five-year convertible bonds, which could have been upsized to €220 million.

The company conducted a reverse bookbuilding Monday, which closed at 11 a.m. ET, and found insufficient interest for the combined transaction, according to two separate company press releases.

Wereldhave said it will continue to explore refinancing options to optimize its debt maturity profile at attractive terms for its shareholders.

If any bonds were repurchased, the price would have been 103.5 plus accrued interest to the settlement date of Dec. 5.

The company said in the first press release that if decided to go ahead with a tender offer, the plans would be announced on Nov. 25 and the tender offer would run for four trading days.

Any outstanding bonds would have been subject to a cleanup call. That is, the bond terms allow the company to call the bonds if the outstanding amount of the bonds is 20% or less of the issued amount, the company noted. The redemption price would be par plus accrued interest.

For information, holders may contact ABN Amro Bank NV (+31 20 628 8044, attn.: head of ECM syndicate, Chris van Eeghen, e-mail chris.van.eeghen@nl.abnamro.com), Barclays Bank plc (+44 207 773 8990, attn: liability management, e-mail eu.lm@barclays.com) or UBS Ltd. (+44 (0)20 7567 0525, attn: liability management group, e-mail mark-t.watkins@ubs.com).

Wereldhave is a closed-end real estate investment company based in the Hague, the Netherlands.

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