Karlsberg opens subscription for up to €50 million five-year bonds

By William Gullotti

Buffalo, N.Y., April 11 – Karlsberg Brauerei GmbH opened the subscription period for a new corporate bond with a target volume of €50 million and a five-year tenor, according to a company announcement on Thursday.

As previously reported, the bond 2024/2029 (ISIN: NO0013168005) will have an interest rate between 6% and 7% that will be determined at the end of the offer period at 6 a.m. ET on April 25.

The prospectus was approved by the Luxembourg Financial Market Authority Commission de Surveillance du Secteur Financier, on April 3.

The bonds will be sold as a public offering in Germany and Luxembourg and as a private placement also in Germany, selected European countries and certain other countries.

Pareto Securities AS, Frankfurt Branch, is acting as the lead manager for the private placement.

The company will use the proceeds to call its €50 million corporate bond 2020/2025 (ISIN: DE000A254UR5) at a redemption price of 101.

Existing bondholders are being given the opportunity exchange those notes for the new notes.

The new bonds are expected to be listed on the Frankfurt Stock Exchange on May 7. The listing for the bonds on the Nordic ABM of the Oslo Stock Exchange is expected within six months of the issue date.

The brewery is based in Homburg, Germany.

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