Grand City Properties places EUR 150m 1.5% five-year CB
Grand City Properties S.A. (the “Company”) announces the successful placement of EUR 150m senior, secured convertible bonds convertible into new and/or existing ordinary shares having a par value of EUR 0.10 (the “Shares”) of the Company (the "Bonds"). Following an accelerated book building process, the Company fixed the nominal coupon at 1.50 % p. a., payable semi-annually in arrear. The initial conversion price was fixed at EUR 9.72 (equal to a premium of 27.5 % above the reference share price). The Bonds will be issued at 100% of their principal amount and will be redeemed at maturity at 106.65 % of their principal amount.
The offer was oversubscribed. Grand City Properties S.A. will receive gross proceeds of EUR 150m. The net proceeds will be used to fund the Company’s acquisitions pipeline. The Company is in advanced process of signing several acquisitions of various under-performing property portfolios with a total volume of more than EUR 200m. The portfolios under consideration are consistent with the Company's business strategy, and the geographic distribution is with primary focus on North Rhine Westphalia and Berlin.
Settlement is expected to take place on or around February 24, 2014. Inclusion of the Bonds to trading on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange is expected to take place on the same day.
J.P. Morgan is acting as Sole Global Coordinator and together with Berenberg and Deutsche Bank as Joint Bookrunners, and Anoa Capital S.A. as Co-manager in relation to the transaction.
Source Company Press Release