Peach continues option hybrid bond
Peach Property Group, which specializes primarily in German apartments, has announced that it will not call its hybrid bond with warrants with an outstanding volume of CHF 45.5 million for the time being.
The Zurich-based company justified the move in a press release with "considerations regarding the balance sheet structure". The share price fell by over 4% yesterday, Monday, the day of publication. The news agency AWP quotes a spokesperson as saying that the company wanted to wait for the half-yearly valuation of the portfolio.
The earliest possible call date for the bond would be June 22. By not calling the bond, the remaining amount outstanding as of the half-yearly financial statements will continue to be recognized as equity.
As Peach emphasizes, the cash inflows from the convertible bond issued at the beginning of May 2023 remain reserved for the full repayment of the hybrid bond with warrants. "Full repayment is targeted for one of the next call dates," it says. From June 22, the company has quarterly call options, the next of which will be on September 22, 2023. (aw)
