Adler Real Estate plans €150 million five-year convertible bonds to yield 1.5%-2.5%, up 25%-30%

By Rebecca Melvin

New York, June 10 – Adler Real Estate AG said Friday that it plans to issue up to €150 million of five-year convertible bonds that were talked to yield 1.5% to 2.5% with an initial conversion premium of 25% to 30%, according to a news release.

Final pricing is expected on June 15.

The convertible notes offering includes a private placement and a public offer in the form of a subscription rights offering addressed to the company’s shareholders and holders of the 2013/2017 6% convertible notes, holders of the 2013/2018 6% convertible notes and holders of the 2015/2018 0.5% mandatory convertible notes. The Regulation S private placement is expected to be executed directly before or at the beginning of the subscription period.

ODDO & Cie, Paris, ODDO Seydler Bank AG, Frankfurt am Main and Stifel Nicolaus Europe Ltd., London are acting as joint bookrunners for the transaction. BHF-Bank AG is acting as selling agent.

Proceeds will be used to refinance existing loans and bonds with comparatively high interest rates, to finance future real estate acquisitions, to modernize the company’s existing real estate portfolio and for general corporate purposes.

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

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