German mobile services reseller Drillisch has said that it will issue €125m (US$166m) worth of bonds exchangeable into shares of freenet, a local mobile and broadband services provider in which Drillisch has a 21.86% stake.
The bonds have a maturity…
German mobile services reseller Drillisch has said that it will issue €125m (US$166m) worth of bonds exchangeable into shares of freenet, a local mobile and broadband services provider in which Drillisch has a 21.86% stake.
The bonds have a maturity of five years and are expected to carry a coupon of between 2.625% and 3.375% per year.
Their initial issue size may be increased by up to €12.5m (US$16.6m) by Drillisch. Furthermore, Drillisch has granted the joint bookrunners BofA Merrill Lynch and Commerzbank a greenshoe option of up to €12.5m to cover over allotments.
The company expects to use the proceeds to refinance existing debt and for general corporate purposes. Drillisch reported long-term liabilities of €163m (US$216.5m) for 2011.
In July last year, freenet confirmed that it was examining a potential merger with Drillisch.