By Angela McDaniels
Tacoma, Wash., July 18 Adler Real Estate AG sold 137.9 million of 2.5% five-year convertible notes with an initial conversion premium of 15%, according to a company press release.
Each note has a par amount of 13.79 and is convertible into one share.
The issue price is 13.1005 per note, or 95% of par.
The company said on July 11 that it would sell up to 10 million convertibles through a Regulation S private placement and a subscription rights offering addressed to the companys shareholders and the holders of its 6% convertibles due 2017, 6% convertibles due 2018 and 0.5% mandatory convertibles due 2018.
The subscription period ended July 19. Shareholders and existing convertible bondholders exercised 2.9 million subscription rights for 6.14 million of the new convertibles.
The convertibles were initially talked to yield 1.5% to 2.5% with an initial conversion premium of 25% to 30%.
The offering had been postponed from June 15 due to adverse market conditions.
The joint bookrunners are Citigroup Global Markets Ltd., ODDO & Cie, Paris, ODDO Seydler Bank AG, Frankfurt am Main and Stifel Nicolaus Europe Ltd. BHF-Bank AG is acting as selling agent.
The company used 60 million of the proceeds to refinance loans and bonds. It will use 15 million of the proceeds for capital expenditures and the remainder to acquire additional properties or for further refinancing.
Adler is a Hamburg, Germany-based real estate company.
A story in the July 12 edition of the Prospect News Convertibles Daily incorrectly stated the par amount of each note and the maximum amount of notes to be sold.
| Issuer: | Adler Real Estate AG
|
| Securities: | Convertible notes
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| Amount: | 137.9 million, or 10 million notes
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| Proceeds: | 131,005,000
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| Maturity: | 2021
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| 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
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| Coupon: | 2.5%
|
| Par amount: | 13.79
|
| Price: | 13.1005, or 95% of par
|
| Initial conversion premium: | 15% above volume-weighted average price of shares price between launch and pricing of bookbuilding process
|
| Initial conversion price: | 13.79
|
| Pricing date: | July 11
|
| Settlement date: | July 19
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| Talk: | 1.5% to 2.5% coupon, up 25%-30% premium
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