IVG Immobilien AG has successfully placed convertible bonds with a maturity of 10 years and a placement volume of €400 million. Due to strong demand the transaction was five times oversubscribed. The convertible bond was priced with a coupon of 1.75% and a conversion premium of 30% to the reference price of €35,5560 implying a conversion price of €46,22. The bonds are convertible into 8,654,262 shares of IVG.
The proceeds of the placement will be used to finance further growth and acquisitions of real estate portfolios. Furthermore IVG has issued the convertible bonds to benefit from the good market environment for equity-linked products to secure attractive financing conditions.
The convertible bonds were offered to institutional investors outside the United States in reliance on Regulation S under the US Securities Act of 1933, as amended. Dresdner Kleinwort and JPMorgan acted as Joint Bookrunners and jointly with Sal. Oppenheim jr. & Cie. KGaA as Joint Lead Managers. Settlement is expected to take place on or around 29 March 2007. Application will be made to include the convertible bonds in the regulated unofficial market (Freiverkehr) of the Frankfurt Stock exchange.