BERLIN (dpa-AFX) - German real estate firm Deutsche Wohnen AG (DWHHF.PK) said it successfully placed convertible bonds maturing in July 2024 with an aggregate principal amount of EUR 800 million, divided into 8,000 bonds in a nominal amount of EUR 100,000 each. The New Convertible Bonds are initially convertible into about 16.5 million new or existing ordinary no par value bearer shares of Deutsche Wohnen or can be repaid in cash.
The New Convertible Bonds placed by Deutsche Wohnen AG were issued at 100% of their nominal value and with a coupon of 0.325%. The initial conversion price amounts to EUR 48.5775, representing a conversion premium of 53.0% above the placement price of the concurrent EUR 545 million capital increase. With regards to the guided EPRA NAV of EUR 29.50-30.00 per share as at December 31, 2016, the initial conversion price represents a premium of about 63%.
Deutsche Wohnen is entitled to redeem the New Convertible Bonds from August 17, 2022 if the stock exchange price of the bearer shares of Deutsche Wohnen amounts to at least 130 % of the conversion price over a certain period. The holders of the New Convertible Bonds will not be entitled to an investor put.
Deutsche Wohnen also successfully placed the cash capital increase announced today. A total of 17,174,110 new shares were placed in a private placement by way of an accelerated bookbuilding with institutional investors in Germany and abroad, while shareholders' subscription rights were excluded. The placement price amounts to EUR 31.75 per share or a tight discount of 2.1% to the XETRA closing price of Deutsche Wohnen before announcement of the transaction.
Following the registration of the capital increase with the commercial register, which is expected to take place on February 23, 2017, the registered share capital of Deutsche Wohnen will increase by 5.1% from EUR 337,480,450 by EUR 17,174,110 to EUR 354,654,560 through the issue of 17,174,110 new no-par value bearer shares, each with a notional value of the Company's share capital of EUR 1.00. The new shares will carry full dividend rights as of January 2016. The new shares are expected to be included in the existing quotation for the company's bearer shares on the Frankfurt Stock Exchange on February 27, 2017.
Deutsche Wohnen achieves gross proceeds amounting to approximately EUR 800 million from the New Convertible Bonds and approximately EUR 545 million from the capital increase. The proceeds from the Capital Increase will be used in most part the repurchase of its outstanding 2020 Convertible Bonds by way of a tender offer. The remaining proceeds from the Capital Increase and the proceeds from the issue of the New Convertible Bonds will primarily be used to finance the future acquisition pipeline, the Pegasus nursing home portfolio acquisition announced in Q3 2016 and other smaller recent acquisitions.
Copyright RTT News/dpa-AFX