By Susanna Moon
Chicago, June 20 - Estavis AG said it placed €8.6 million of 7.75% convertible bonds due June 25, 2017, primarily with institutional investors.
The company priced the convertibles at par of €2.40 each on May 30, saying it planned to issue up to €17.2 million of notes.
Estavis previously said it planned to sell 7,159,676 convertible bonds. Each bond will convert into one share at any time from Aug. 6 until 10 business days before maturity.
With the bond deal, the company "was able to take a significant first step toward its new strategy of building a high-return portfolio of investment properties in Germany with the acquisition of a residential building complex in Itzehoe, a town on the outskirts of Hamburg" at a cost of about €12 million, according to a company press release.
As required under German securities law, company shareholders were entitled to subscription rights, according to a previous release. They were given the right to buy one €2.40 bond for every two shares they hold.
The formal subscription offer was scheduled for publication in the German Federal Gazette (Bundesanzeiger) on June 1 and ran from June 4 to June 18.
Close Brothers Seydler Bank AG is the lead manager and bookrunner.
Estavis is a listed property company based in Berlin focusing on residential properties.
| Issuer: | Estavis AG
|
| Issue: | Convertible bonds
|
| Amount: | €8.6 million
|
| Maturity: | June 25, 2017
|
| Coupon: | 7.75%
|
| Price: | Par of €2.40 each
|
| Conversion price: | €2.40
|
| Conversion ratio: | 1
|
| Pricing date: | May 30
|
| Settlement date: | June 20
|
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