Adler Real Estate: Offering of up to €150 million five-year convertibles set at 2.5%, up 15%

By Stephanie N. Rotondo

Seattle, July 11 – Adler Real Estate AG again amended the terms of its planned offering of up to €150 million of five-year convertibles on Monday, according to a company press release.

The company said the issue price would come at 95% of the nominal amount, Additionally, the coupon was placed at 2.5% and the initial conversion premium was adjusted to 15% of the reference price, which will be fixed at the volume weighted average price of the company’s stock between the launch and the bookbuild.

The accelerated bookbuilding process begins on Monday, with pricing of the new deal expected on July 19 – a month later than the original pricing date of June 15. The offering had been postponed due to adverse market conditions.

On July 5, Adler 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.

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 convertibles were initially 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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