Karlsberg to kick off exchange offer for bonds due 2025 on Friday

By Mary-Katherine Stinson

Lexington, Ky., April 3 – Karlsberg Brauerei GmbH will launch a public exchange offer for its existing corporate bond 2020/2025 (ISIN: DE000A254UR5) with a nominal value of €50 million in connection with a planned new corporate bond issue, according to a notice.

The exchange offer begins on April 5 and is expected to end at 6 p.m. ET on April 22.

For each exchanged bond, holders will receive a new 2024/2029 bond, a cash settlement of €10.00 and accrued interest.

The new corporate bond 2024/2029 (ISIN: NO0013168005) is being talked with an interest rate between 6% and 7%. It will be sold as a public offering in Germany and Luxembourg and as a private placement also in Germany, selected European countries and certain other countries.

The subscription period for the new bond begins April 11 and is expected to end at 6 a.m. ET on April 25.

Creditors participating in the exchange offer will be granted a multiple purchase option for the new bonds.

The company intends to call any remaining 2020/2025 bonds not tendered in the offer at 101 within three business days of the issuance of the new bonds and by June 6 at the latest.

The 2020/2025 bonds have been callable at 101 since Sept. 30.

The new bonds are expected to be listed on the Frankfurt Stock Exchange and within six months of issue on the Nordic ABM of the Oslo Stock Exchange.

The brewery is based in Homburg, Germany.

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