By Stephanie N. Rotondo
Seattle, July 11 – Adler Real Estate AG is placing €150 million of 2.5% five-year convertible notes with an initial conversion premium of 15%, according to a company press release.
The pricing info came just hours after the company again amended the terms of the deal, adjusting the conversion premium and setting the coupon.
The initial conversion price is €13.79 per note.
The convertibles were initially talked to yield 1.5% to 2.5% with an initial conversion premium of 25% to 30%.
The accelerated bookbuilding process began Monday – 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.
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.
| Issuer: | Adler Real Estate AG
|
| Securities: | Convertible notes
|
| Amount: | €150 million, or 10 million notes
|
| Maturity: | 2021
|
| Bookrunners: | Citigroup Global Markets Ltd., ODDO & Cie, Paris, ODDO Seydler Bank AG, Frankfurt am Main and Stifel Nicolaus Europe Ltd.
|
| Selling agent: | BHF-Bank AG
|
| Coupon: | 2.5%
|
| Price: | 95% of par (€15 per note)
|
| Initial conversion premium: | 15%
|
| Initial conversion price: | €13.79
|
| Pricing date: | July 11
|
| Settlement date: | July 19
|
| Talk: | 1.5% to 2.5% coupon, up 25%-30% premium
|
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