Immofinanz begins exchange offer for 2.75%, 1.25% convertibles

By Angela McDaniels

Tacoma, Wash., April 6 - Immofinanz AG has begun an offer to issue up to €600 million of new convertible bonds in exchange for its €750 million 2.75% convertible bonds due 2014 and €750 million 1.25% convertibles due 2017, according to a company news release.

The new convertibles will mature on Dec. 22, 2011 and carry a 7% coupon. The conversion price is €2 per share.

For every five convertibles tendered, the company will issue two new convertibles with a principal amount of €100,000 each.

Participating holders will also receive €5,000 in cash for each €100,000 principal amount of convertibles exchanged.

Subsidiary ImmoEast AG will issue a guarantee for the new convertibles.

The offer expires on April 23.

The company said the exchange offer is the second step of its restructuring plan. The first step was the elimination of its intercompany loan.

Deutsche Bank AG (xchange.offer@db.com) is the acceptance agent.

Immofinanz is a Vienna-based real estate firm.

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