The executive board of the Berlin-headquartered entertainment and ticketing company, along with the consent of the supervisory board, reached the decision to finance further growth and refinance the Corporate Bond 2018/2023.
The Bonds 2023/2026 in a nominal amount of €1,000 each may be subscribed to during the offering period from June 19-27, via the subscription functionality ‘Direct Place’ of capital market group Deutsche Börse AG.
The Bond will also be offered to institutional investors in Germany and Luxembourg, as well as in select European and other countries by way of a private placement. The Bond is also subject to Norwegian law and has a term of three years.
The annual fixed interest rate of the Bonds will be within the interest rate range of 7.5% to 8.5% and will be determined on or prior to the end of the offering period, based on the subscription orders in a book building process and announced by pricing notice.
There are also plans to include the Bond in trading on the Open Market of Deutsche Börse AG (Regulated Unofficial Market of the Frankfurt Stock Exchange), with an application to be presented for inclusion in the Nordic ABM, the self-regulated marketplace organised and operated by the Oslo Stock Exchange. This will happen within six months of the issue of the Bond.
DEAG is also set to extend a public exchange offer to the holders of the Bonds issued on October 31, 2018 in the aggregate principle amount of €25m, to exchange their Bonds 2018/2023 for the Bonds 2023/2026 in addition to a cash settlement of roughly €15m and accrued interest. DEAG also intends to prematurely call and redeem the 2018/2023 Bonds that have not been exchanged in the exchange offer.
This exchange offer is expected to be published tomorrow (June 7) in the German Federal Gazette and on DEAG’s Investor Relations website.
Holders of Bonds 2018/2023 are able to submit an offer to exchange through their custodian bank within the exchange period in writing. Holders of the Bonds 2018/2023 participating in the exchange offer will also be presented with a multiple purchase option.
The securities prospectus required for the Public Offering in Germany and Luxembourg was approved by the Luxembourg Financial Supervisory Authority Commission de Surveillance du Secteur Financier (CSSF). It will now be submitted to the German Federal Financial Supervisory Authority (BaFin) by way of notification. The securities prospectus will also be published on DEAG’s Investor Relations website and the Luxembourg Stock Exchange platform.
DEAG will use the proceeds from the bond issue to refinance the Bond 2018/2023 and to continue organic and inorganic growth, through acquiring majority stakes in companies within the live entertainment industry.
The transaction is being aided by IKB Deutsche Industriebank AG and Pareto Securities AS, Frankfurt Branch, as joint lead managers.