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PRESS RELEASE: TAG Immobilien AG announces EUR 110m increase in its 2013/2018 corporate bond

DGAP-News: TAG Immobilien AG / Key word(s): Bond TAG Immobilien AG announces EUR 110m increase in its 2013/2018 corporate bond

10.02.2014 / 08:00

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Press release

Not for distribution in the United States, Australia, Canada or Japan.

TAG Immobilien AG announces EUR 110m increase in its 2013/2018 corporate bond

Hamburg, 10 February 2014 - The Management Board of TAG Immobilien AG ('TAG' or 'the Company' in the following) announces that it has increased the WKN A1TNFU/ ISINXS0954227210 corporate bond issued in August 2013 by another EUR 110 million through a private placement. The original volume of the bond, which matures in August 2018 and pays a coupon of 5.125% per year, was EUR 200 million. The bond is traded in the Open Market, the Entry Standard of the Frankfurt Stock Exchange, with participation in the Prime Standard for corporate bonds. The bond increase was issued at 103% of par value, which is about the current price of the bond.

The proceeds from the bond increase will primarily be used to further optimise the Company's capital and financing structure, and in particular to pay down higher interest-bearing bank loans without incurring prepayment penalties. The Board expects interest savings of a little over EUR 1 million per year, starting as early as Q2 2014.

Furthermore, the Company intends to use the net proceeds to finance TAG's continued growth and for other general business purposes.

Originally posted here:
PRESS RELEASE: TAG Immobilien AG announces EUR 110m increase in its 2013/2018 corporate bond