IMMOFINANZ AG launches a €375 million offering of bonds exchangeable into BUWOG AG shares (AT)

IMMOFINANZ AG today announces the offering of bonds with a volume of €375 million exchangeable into BUWOG AG shares. The bonds will be offered in an accelerated bookbuilding to institutional investors.
The bonds will be marketed with a coupon ranging between 0.75% and 1.50% per annum. The initial exchange price of the bonds will be set at a premium between 15% and 25% over the reference share price. The coupon and the exchange premium will be determined following the accelerated bookbuilding, which is expected to take place today, 4 September 2014.
The bonds will be issued and redeemed at 100% of their principal amount and will mature on 11 September 2019.
Bondholders will be entitled to have their bonds redeemed at their principal amount plus accrued interest on 11 September 2017.
The reference share price represents the volume weighted average price of the BUWOG AG shares on the Vienna Stock Exchange between market open and close of trading on 4 September 2014.
Upon exchange, IMMOFINANZ AG will have the discretionary right to deliver an amount in cash, instead of BUWOG AG shares, as described in the Terms & Conditions of the bonds. Upon redemption, IMMOFINANZ AG will have the option to deliver a combination of shares and cash.
Application will be made to introduce the bonds for trading on the Third Market (MTF) of the Vienna Stock Exchange.
The proceeds from the bonds will be used to repay existing financings, for current and planned portfolio investments, opportunistic growth opportunities and/or general corporate purposes.
IMMOFINANZ AG holds a 49% investment in BUWOG AG (corresponding to approx. €48.81 million shares) following the majority spin-off on 26 April 2014 and plans to sell this investment over the medium-term.
Source: IMMOFINANZ