Noerr advises TAG on convertible bond issue and purchase offer

Noerr has advised TAG Immobilien AG on the issue of convertible bonds for €262 million and the purchase of existing notes issued by TAG Immobilien AG. The Frankfurt-based Noerr partners and capital markets experts Dr Laurenz Wieneke and Dr Julian Schulze De la Cruz acted for TAG.

The newly issued convertible notes with a term of five years have a coupon of 0.625% and were placed in a private placement by accelerated bookbuilding exclusively to institutional investors. The convertible notes will be issued on or around 1 September 2017. Once they have been issued, TAG intends to apply for the convertible notes to be admitted for trading in the Open Market of Frankfurt Stock Exchange. Deutsche Bank, Berenberg and Credit Suisse supported the placement of the convertible bonds as joint bookrunners.

At the same time, TAG additionally called on the holders of its existing €310 million notes (which have a coupon of 5.125% and are due in August 2018) to offer their notes for purchase by TAG for cash by 12 September 2017. This invitation allows the bondholders to sell their notes before the end of their normal term, while at the same time the company is able to further optimise its balance sheet and funding structure.

Noerr’s capital markets team in Frankfurt regularly assists TAG on capital markets and real estate transactions. This year, Laurenz Wieneke and Julian Schulze De la Cruz have already advised the company on the successful placement of its own shares.

Advisors to TAG Immobilien AG: Noerr LLP

Dr Laurenz Wieneke, Dr Julian Schulze De la Cruz; Associate: Dominique Stütz (all Capital Markets, Frankfurt)