Adler widens initial conversion price range for five-year convertibles

By Angela McDaniels

Tacoma, Wash., July 5 – Adler Real Estate AG widened the subscription and initial conversion price for its convertible note issue to a range of €10.50 to €17.50, according to a company announcement.

Previously, the range was €15.00 to €16.56.

In addition, the company named Citigroup Global Markets Ltd. as an additional joint global coordinator and joint bookrunner. Citi joins joint bookrunners ODDO & Cie, Paris, ODDO Seydler Bank AG, Frankfurt am Main and Stifel Nicolaus Europe Ltd. BHF-Bank AG is acting as selling agent.

As previously reported, the company had planned to price up to €150 million of five-year convertibles on June 15 but postponed the issue, citing adverse market conditions.

The offering includes a Regulation S private placement and a public offer in the form of a subscription rights offering addressed to the company’s shareholders and the holders of its 6% convertibles due 2017, 6% convertibles due 2018 and 0.5% mandatory convertibles due 2018.

The public offer of subscription rights was extended by a month to July 15.

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

The convertibles were talked to yield 1.5% to 2.5% with an initial conversion premium of 25% to 30%.

Proceeds will be used to refinance 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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