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CERHA HEMPEL advises S IMMO AG on two liability management transactions, the issue of a EUR 150 million and a EUR 100 million bond

Now for the second time, CERHA HEMPEL has advised stock exchange listed S IMMO AG in connection with a liability management transaction.

Now for the second time, CERHA HEMPEL has advised stock exchange listed S IMMO AG in connection with a liability management transaction, an issue of bonds together with a simultaneous repurchase or exchange of outstanding bonds issued by S IMMO AG that were soon to mature: In May 2019, S IMMO AG invited holders of the 3% S IMMO bond 2014-2019 to offer S IMMO AG the repurchase of their bonds at a rate of 102.95% of the nominal amount. Bonds were offered to S IMMO AG for repurchase in the nominal amount of approximately EUR 33 million.

S IMMO AG subsequently issued a new EUR 150 million bond with a maturity of seven years (2019-2026) and a coupon of 1.875%. In September 2019, S IMMO AG invited holders of the 4.5% S IMMO bond 2014-2021 to offer S IMMO AG their bonds for exchange or repurchase, in each case at a repurchase rate of 107% of the nominal amount. Bonds were offered to S IMMO AG in the nominal amount of approximately EUR 58.9 million, corresponding to a return rate of approximately 68.2%. In exchange, S IMMO AG issued a new EUR 100 million bond with a maturity of 10 years (2019-2029) and a coupon of 2%. CERHA HEMPEL advised S IMMO AG on the preparation of the repurchase and exchange offer and the issue of the new bond.

The bonds with a denomination of EUR 500 were subscribed by private investors in Austria and institutional investors worldwide and are listed on the Vienna Stock Exchange in the Corporates Prime Segment.

The September transaction was supported by Erste Group Bank AG, acting as Sole Lead Manager and Bookrunner.

The team at CERHA HEMPEL comprised partner Dr. Volker Glas, attorney MMag. Christian Aichinger and associates Mag. Mathias Drescher and Mag. Benedikt Pollak.