GSW carries out EUR 183m bond issue for new acquisitions

GSW Immobilien has carried out a EUR 182.9 mln convertible bond issue to fund new acquisitions. The German listed residential property company said this week it is in advanced talks to buy 3,000 apartments in Berlin, just weeks after it purchased 4,400 Berlin homes for EUR 200 mln.

The convertible bonds were offered through a private placement with institutional investors and are convertible into 5.1 million new ordinary shares. The annual coupon rate was set at 2.0% and the initial conversion premium was fixed at 22.5% above the reference price of EUR 29.5 by means of an accelerated bookbuilding process. The initial conversion price thus amounts to EUR 36.20.

Deutsche Bank and Société Générale Corporate & Investment Banking acted as joint bookrunners and joint lead managers for the transaction.

GSW’s CFO Andreas Segal commented: ‘Active financial management is becoming increasingly important in order to keep the borrowing costs to a minimum and at the same time to ensure a high level of flexibility for the financing of new investments. Alternative financing instruments such as convertible bonds therefore help GSW Immobilien AG to raise liquidity and optimise borrowing costs.’ (Source)