Adler Real Estate postpones five-year convertibles, blames Brexit

By Rebecca Melvin

New York, June 15 – Adler Real Estate AG postponed its issue of five-year convertible notes and is extending its public offer of subscription rights by a month to July 15, according to a release.

Final terms of the offering will be determined prior to the expiration of the extended subscription period.

Adler cited adverse market conditions and growing uncertainty around the upcoming referendum on the United Kingdom’s membership in the European Union for its decision to postpone the offering.

Pricing of the convertibles and public offering had been expected to occur on Wednesday.

As previously reported, Adler had planned 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%.

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

Proceeds are earmarked to refinance existing loans and bonds, 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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