German telco Drillisch intends to issue senior unsecured convertible bonds worth a total €100m (US$136.6m).
The bonds will be convertible into about 4.1 million Drillisch shares, equal to 7.7% of all outstanding shares, the company said in a…
German telco Drillisch intends to issue senior unsecured convertible bonds worth a total €100m (US$136.6m).
The bonds will be convertible into about 4.1 million Drillisch shares, equal to 7.7% of all outstanding shares, the company said in a statement.
The bonds will have a maturity of five years and be issued and redeemed at 100% of their principal amount with a coupon of 0.75% to 1.25%. The initial conversion price will be set at a premium of 17.5% to 22.5% on the reference share price. Pricing for the convertible bonds is expected to take place today, with settlement on or around 12 December.
Drillisch said the transaction is designed to diversify its funding sources and improve its financial and strategic flexibility. Proceeds are to be used for general corporate purposes.
BofA Merrill Lynch is the sole bookrunner for the transaction.
The telco intends to apply to include the bonds for trading on the Frankfurt Stock Exchange.