Immofinanz to Sell Bonds Convertible Into 125 Million Shares

Feb. 14 (Bloomberg) - Immofinanz AG, an Austrian property developer, is offering a bond issue that will be convertible into as many as 125 million shares to refinance two outstanding convertible bonds.

Immofinanz shareholders can order three bonds convertible into one share each for every 23 shares they own, Vienna-based Immofinanz said in a statement today. The subscription period starts Feb. 16 and is due to end March 2. Pricing is to be determined on March 3 after bonds not ordered by shareholders have been offered to outside investors. The price on the bonds, due March 2018, won’t exceed 5.50 euros, capping the total volume at 687.5 million euros. Immofinanz closed at 3.27 euros in Vienna trading today.

At the same time, Immofinanz is offering to buy back convertible bonds due 2014 and 2017. It is offering to pay 99.75 percent of face value for each 2014 bond and 106 percent of face value for each 2017 bond, according to the statement. Their outstanding principal is 773 million euros. The volume of the buyback is limited by the amount raised in the sale of the new bond, Immofinanz said. The bonds can be tendered from tomorrow until March 7.

Immofinanz plans to use as many as 104 million treasury shares to service the convertible bond, it said Feb. 11.

Credit Suisse Group AG is the sole global coordinator for the bond sale, and Credit Suisse, Deutsche Bank AG and UniCredit Bank Austria AG are joint bookrunners.

To contact the reporter on this story: Boris Groendahl in Vienna bgroendahl@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net