Peach Property issues 120 million bond

Peach Property Group AG, which specialises in German residential real estate, intends to issue CHF 120 million of unsecured, subordinated mandatory convertible bonds due December 2021, with the option to increase the nominal amount to CHF 150 million.

The net proceeds will be used to finance the recent acquisition of 4,300 apartments in North Rhine-Westphalia and Bremen, the so-called Eagle portfolio, as well as for further corporate growth, Peach says. The Eagle portfolio comprises 275,00 sqm of residential space, 800 sqm of commercial space and more than 1,500 parking spaces in the Ruhr area and the Bremen region.

According to Peach, the main shareholders Ares Management Corporation and ZBG Capital as well as the new investors Alpen Partners and Crossinvest have given irrevocable undertakings and express expressions of interest to purchase the bonds.

The bonds will be issued at 100% of their principal amount and will be mandatorily convertible into new Peach registered shares with a par value of CHF 1.00 per share at an initial conversion price of CHF 55.00 on 23 December 2021, the company says. The bonds may also be converted at the conversion price at any time from 19 to 23 July 2021 and from 20 to 24 September 2021 in accordance with the terms and conditions of the bonds. They bear interest at a coupon of 2.50% per annum. The bonds are convertible into approximately 2.2 million new shares, representing 17.2% of the Company's current outstanding share capital.

Application will be made for the bond to be admitted to listing and trading on the SIX Swiss Exchange, with provisional trading expected to start on or around June 23, 2021, the company added. (ah)