German wireless operator Drillisch has placed €100m (US$136.6m) of senior unsecured convertible bonds due 2018 with international institutional investors outside the US.
The coupon for the bonds, which will be issued and redeemed at 100% of their…
German wireless operator Drillisch has placed €100m (US$136.6m) of senior unsecured convertible bonds due 2018 with international institutional investors outside the US.
The coupon for the bonds, which will be issued and redeemed at 100% of their principle amount, is at 0.75% per annum, the company said in a statement.
The initial conversion price was set at €24.29 (US$33.19), representing a 22.5% premium on the reference share price of €19.83 (US$27.09). Drillisch said the issue was multiple times oversubscribed.
The bonds will be issued by Drillisch directly in denominations of €100,000. Settlement is expected to take place on about 12 December and an application is planned to include the bonds for trading on the Frankfurt Stock Exchange. The operator will commit to a three-month lock-up, subject to certain exception.
BofA Merrill Lynch is the sole bookrunner for the transaction.
The bonds will be convertible into about 4.1 million Drillisch shares, equal to 7.7% of all outstanding shares.
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.
Drillisch reported adjusted service revenues of €212.9m for the first nine months of 2013 and EBITDA of €52.1m.
