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PRESS RELEASE: Grand City Properties S.A. launches a convertible bond offering

Grand City Properties S.A., / Key word(s): Corporate Action/Issue of Debt

17.02.2014 06:59

Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer / publisher is solely responsible for the content of this announcement.

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Grand City Properties S.A. launches a convertible bond offering

Luxembourg, February 17, 2014 - The Board of Directors of Grand City Properties S.A. (the 'Company') has resolved today to issue senior, secured convertible bonds convertible into new and/or existing ordinary shares having a par value of EUR 0.10 (the 'Shares') of the Company (the 'Bonds'). The Bonds (each with denomination of EUR 100,000) will be offered only to institutional investors outside the US, Canada, Australia, Japan, South Africa or any other jurisdiction in which offers or sales of the securities would be prohibited by applicable law.

Bonds with a total placement volume of up to EUR 150 million and initially convertible into up to approximately 15.5 million Shares representing up to approximately 11.8% of the fully diluted share capital of the Company (subject to any adjustment of the conversion ratio pursuant to the terms and conditions of the Bonds), are to be placed.

The Bonds will have a maturity of five years. The Bonds will be issued at 100% of their principal amount. The Bonds will carry a nominal coupon between 1.5 % and 2.5 % p. a., payable semi-annually in arrear, and will be redeemed at maturity at a price between 101.3 and 109.3% of their principal amount. The initial conversion price will be set at a conversion premium of 22.5% - 27.5% above the reference share price. Pricing for the Bonds will be set through an accelerated bookbuilding and is expected to take place today with settlement on or around 24 February, 2014.

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PRESS RELEASE: Grand City Properties S.A. launches a convertible bond offering