Peach Property Group increases the target volume for its convertible hybrid bond due to strong demand
- Significant subscription volumes shortly after beginning of pre-subscription period
- Option to increase target volume from CHF 25 million to up to CHF 59 million will be used
- Pre-subscription right for shareholders until 29 September 2017 (noon CET) with bookbuilding for non-subscribed bonds
- Proceeds to be used to further portfolio increase and repayment of liabilities
Zurich, 20 September 2017 – Peach Property Group, an investor specialising in the management of residential property in Germany, has resolved to increase the target volume of its convertible hybrid bond (ISIN 38195225/CH0381952255) due to high demand. The Company recorded a significant volume of subscriptions shortly after the beginning of the pre-subscription period for shareholders, which runs until 29 September 2017 (noon). Shareholders and further investors have signalled great interest in subscribing for the bond. As a result, Peach Property Group AG is using its option to increase the target volume from CHF 25 million to up to CHF 59 million.
Any convertible hybrid bonds that have not been subscribed during the pre-subscription will be offered to interested shareholders and further investors. Listing on the SIX Swiss Exchange has been applied for and provisional admission is planned for 4 October 2017. The Group will use the funds from the issue of the convertible bond to further expand its real estate portfolio in line with its strategy and to repay existing liabilities.
The convertible hybrid bond has an unlimited term, and Peach Property Group AG can terminate it for the first time on 30 September 2022. Until this date the interest coupon is 3.00 percent per year, and thereafter annual interest increases to 3-month LIBOR plus 9.25 percent. The convertible hybrid bond can be converted to registered shares of Peach Property Group AG (ISIN 11853036/CH0118530366) at a conversion price of CHF 29.50 from 16 October 2017 to 30 December 2020