German property firm Deutsche Wohnen is planning to raise up to €800 million through the issue of convertible bonds maturing in January 2026.
The bonds will be offered through a private placement to institutional investors with a coupon of between 0.10 percent and 0.60 percent per year, and a conversion premium from 40 percent to 45 percent above the reference share price.
The initial conversion price will be announced on 27 September.
The bond is expected to be issued in October and to be admitted for trade on the non-regulated open market segment (Freiverkehr) of the Frankfurt Stock Exchange shortly thereafter. Under the terms, Deutsche Wohnen will have the right to redeem the bonds from 27 January 2023 if the exchange price per bearer share exceeds 130 percent of the conversion price.
The German property firm has also solicited offers from holders of its seven-year convertible bonds issued in 2014 with an outstanding aggregate nominal amount of €400 million. The current market value of the outstanding 2021 convertible bonds amounts to approximately €708 million.
The proceeds of the new convertible bonds will be used to finance the convertible bonds tender offer and for general corporate purposes.