Deutsche Wohnen to price €400 million seven-year convertibles at 0.375%-0.875%, up 27.5%-32.5%

By Rebecca Melvin

New York, Sept. 3 – Deutsche Wohnen AG plans to price €400 million of seven-year convertible bonds at par of €100,000 that were talked to yield 0.375% to 0.875% with an initial conversion premium of 27.5% to 32.5%, according to a news release.

The bonds are non-callable until Oct. 8, 2018 and then are provisionally callable if shares rise to at least 130% of the conversion price. Holders can put the bonds on Sept. 8, 2019.

Goldman Sachs International and UBS Investment Bank are the joint bookrunners of the deal.

About €100 million of the proceeds will be used to cover one-time costs of refinancing bank loans, up to €150 million will be earmarked for partial debt retirement or repayment of bank loans and at least €150 million will be used for investments in real estate and general business purposes.

Frankfurt-based Deutsche Wohnen is a residential property developer.

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