Adler Real Estate plans €11.25 million 6% convertible bonds, up 13.64%

By Susanna Moon

Chicago, Oct. 28 - Adler Real Estate AG said it plans to issue up to €11.25 million of 6% convertible bonds with a conversion premium of 13.64%.

The company's management board approved issuing a convertible bond with a principal amount of up to €11.25 million divided into up to 3 million notes in bearer form, according to a company notice.

The initial conversion price will be €3.75.

The company's stock (ETR: ADL) closed at €3.30 on Oct. 25

In accordance with their statutory subscription rights, shareholders as well as holders of the 6% convertible bond 2013/2017 are entitled to purchase six new convertible notes for every 43 shares or 6% notes 2013/2017, the company noted. Every note initially entitles conversion into one share.

The subscription period for the rights offer will be two weeks beginning in November.

The company said it has already received requests for subscriptions from authorized parties in a substantial amount.

The management board plans to use the issue proceeds to invest in income-generating residential portfolios in Germany, in line with the company's acquisition strategy.

Close Brothers Seydler Bank AG, of Frankfurt am Main, assists in the transaction.

Adler is a Hamburg, Germany-based real estate company.

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