By Angela McDaniels
Tacoma, Wash., Oct. 19 - Eurocastle Investment Ltd. issued an additional €24.75 million of 20% perpetual subordinated convertible securities, according to a company news release.
Of the €24.75 million, €15 million was issued on Oct. 6 and €9.75 million was issued on Monday. The convertibles priced at a premium to par.
The company said the convertibles are part of the same series of the €75 million convertibles issued in June and were issued on similar terms. The total issue size is now €99.75 million.
Lazard & Co. was the placement agent for the Regulation S issue in June.
The conversion price is €0.30.
The convertibles are non-callable for two years. After that time, they are redeemable by the issuer at a premium of 20%.
The proceeds of the June and Oct. 6 tranches were earmarked to retire part of a corporate loan, and the proceeds of the Oct. 19 tranche will be used to satisfy a portion of the company's debt obligations.
In June, the company said no interest would be paid on the convertibles until the corporate loan was paid off in full.
Eurocastle is a St. Peter Port, Guernsey, investment company that owns and manages German commercial real estate assets.
| Issuer: | Eurocastle Investment Ltd.
|
| Issue: | Subordinated convertible securities
|
| Amount: | €99.75 million
|
| Maturity: | Perpetual
|
| Coupon: | 20%
|
| Price: | Premium to par
|
| Conversion price: | €0.30
|
| Call option: | At a premium of 20% after two years
|
| Warrants: | No
|
| Agent: | Lazard & Co. (for €75 million)
|
| Settlement dates: | June 24 (for €75 million); Oct. 6 (for €15 million); Oct. 19 (for €9.75 million)
|
| Stock symbol: | Euronext Amsterdam: ECT
|
| Stock price: | €0.50 at close Oct. 19
|
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