CORESTATE Capital Holding has announced the successful placement of senior, unsecured convertible bonds, due 2022 in an aggregate nominal amount of €200m.The company intends to use the net proceeds for the refinancing of existing debt as well as for general corporate purposes.
The Bonds are rated BB+ in line with CORESTATE’s long-term corporate credit rating and have a maturity of 5 years. The Bonds were issued at 100% and will be redeemed at 100% of their principal amount unless previously converted or repurchased and cancelled. The Bonds were placed with a coupon of 1.375% per annum, payable semi-annually in arrear and the conversion price was set to €61.9580, representing a premium of 27.5% above the reference share price. The settlement of the Bonds is expected to take place on or around 28 November 2017.
Lars Schnidrig, CFO of CORESTATE: "The successful placement of the convertible bond rated by Standard & Poor’s underscores our enhanced access to capital markets. As envisaged we have further diversified our funding base thereby significantly reducing our cost of capital. Our convertible was oversubscribed shortly after launch. This reflects the high level of trust of the international capital markets in our stable and sustainable business model.”
Credit Suisse Securities (Europe), Morgan Stanley and Berenberg are acting as Joint Global Co-ordinators and together with Jefferies International Limited as Joint Bookrunners.
