Aug. 30 (Bloomberg) -- Conwert Immobilien Invest SE, an Austrian company that buys and renovates apartment blocks, is offering to swap convertible bonds for new notes that mature four years later.
The 80 million euros ($100 million) of new bonds will carry a semi-annual coupon of 4.5 percent and expire in 2018, Vienna-based Conwert said today. The bonds can be handed over for stock when the shares rise to 11.59 euros, the bank said in a separate statement. Investors can also exchange their 2014 bonds for cash.
The exchange is aimed at reducing leverage and extending the maturity of debt, the company said.
Conwert fell 3.2 percent to 8.88 euros at the 5:30 p.m. close of trading in Vienna, the biggest decline in more than an month. The convertible notes traded at 108.13 euros.
The 2014 bonds pay a 1.5 percent annual cash coupon, plus 1.5 percent accrued interest, which adds up to coupon payments of about 3 percent, said Conwert spokesman Clemens Billek. The bonds will be exchanged at a price of about 108 euros plus interest, for every 100 euros in face value.
Barclays Plc is the bookrunner on the deal and Raiffeisen Centrobank AG is the co-lead manager.
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