Corestate issues convertible bond
Corestate Holding is issuing a convertible bond in the amount of EUR 150 million with an option to increase the volume by a further EUR 50 million to EUR 200 million.
According to Corestate, the bonds are expected to be rated BB+ - in line with the real estate company's long-term corporate rating. They are to have a term of five years and will be offered with a coupon of between 1.00 and 1.75 percent p.a. and a conversion premium of 25 to 30 percent above the volume-weighted average price of the shares in XETRA trading between the start and pricing of the offer.
The bonds will be placed exclusively with institutional investors in certain countries as part of an accelerated bookbuilding process. They will be issued and redeemed at 100 percent of their nominal amount, unless they have already been converted or repurchased and canceled.
The net proceeds are to be used to refinance existing liabilities and for general corporate purposes.
