Peach Property changes terms of its convertible bond issue
Peach Property Group AG, which specializes primarily in German residential real estate, is extending the subscription period for its convertible bond resolved on March 21 and lowering the conversion price.
Instead of April 6, the subscription period now runs until May 9. The conversion price will be reduced from CHF 20 to CHF 15. The issue volume remains unchanged at CHF 50 million, but the increase option has been limited from CHF 75 million to CHF 65 million due to the lower conversion price. The entire issue proceeds will be used primarily for the refinancing of the outstanding hybrid bond with warrants.
The issue price of the new convertible bond is 100% of the nominal value. The terms of the bond provide for an interest coupon of 3% p.a. with a three-year maturity until May 2026. Interest will be paid annually, for the first time on May 16, 2024. Conversion of the convertible bond can take place annually during the term within two conversion windows of five trading days each into shares of Peach Property Group AG. The first conversion window is December 15.
With an issue volume of CHF50 million, Peach Property will issue up to 3.33 million new registered shares from the conditional capital during the term, depending on the actual volume converted. This would correspond to approximately 16% of the company's outstanding share capital. (aw)
