IMMOFINANZ's convertible bond issue of 14 November 2007 was placed successfully. Due to high demand on the part of institutional investors, the issue was oversubscribed threefold. Consequently, the option to increase the size of the issue by a further EUR 100 million was exercised, increasing the total volume of the offering to EUR 750 million.
The convertible bond has a time to maturity of 10 years resulting in yields of 3.75 % for subscribers. The effective conversion price of EUR 12 lies well above the net asset value, which was EUR 11.30 at the end of the first quarter.
IMMOFINANZ has now placed two successful convertible bond offerings in 2007. Subscription orders were received from virtually all countries in which the convertible bonds were offered for purchase. The value of the bond issue in January 2007 has been EUR 750 million, too.
The new issue benefits IMMOFINANZ greatly. The attractive interest rate will reduce refinancing costs as compared to a 10-year loan by EUR 125 million over the bond's time to maturity.
The convertible bond issue was handled by a consortium of distinguished investment banks. Deutsche Bank AG, J.P. Morgan Securities Ltd. and Merrill Lynch International acted as joint bookrunners and lead managers. |
