DGAP-News: MTU Aero Engines AG
/ Key word(s): Bond
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MTU Aero Engines AG successfully placed Convertible Bonds
- Issue volume of EUR 500 million, 7.5 year maturity
- 0.05% coupon, 103% issue price, implying a -0.34% yield to maturity and 55% conversion premium
Munich, 10 September 2019: MTU Aero Engines AG ("MTU" or the "Company") announces the successful placement of new senior, unsecured convertible bonds maturing in March 2027 with an aggregate principal amount of EUR 500 million, divided into 5,000 convertible bonds with a denomination of EUR 100,000 each ("New Convertible Bonds"). The New Convertible Bonds are convertible into new and/or existing ordinary registered shares of the Company ("Ordinary Shares"). The shareholders' subscription rights have been excluded.
The New Convertible Bonds will have a maturity of 7.5 years and will bear a fixed coupon of 0.05%, payable annually in arrear. The issue price was set at 103%, implying a yield to maturity of -0.34%, and the conversion premium was set at 55% over the reference share price (being the average of the daily volume-weighted average prices of the no-par value ordinary registered shares of the Company on XETRA on 11, 12 and 13 September 2019).
The proceeds of the New Convertible Bonds will be used to finance the partial repurchase, if any, of the outstanding convertible bonds due 2023, ISIN DE000A2AAQB8, of the Company in connection with the invitation to sell announced on 10 September 2019 and for general corporate purposes.
The Company will have the option to redeem the New Convertible Bonds at their principal amount (plus accrued but unpaid interest) in accordance with the terms and conditions of the New Convertible Bonds at any time (i) on or after 8 April 2025 if the price of the Ordinary Shares is equal to or exceeds 130% of the then prevailing conversion price over a specified period or (ii) if 20% or less of the aggregate principal amount of the New Convertible Bonds remains outstanding.
The New Convertible Bonds have only been placed in accordance with Regulation S under the United States Securities Act of 1933 as amended to institutional investors outside the United States of America via a private placement. Settlement of the New Convertible Bonds is expected on or around 18 September 2019. The inclusion of the New Convertible Bonds in the open market segment (Freiverkehr) of the Frankfurt Stock Exchange is expected shortly thereafter.
HSBC and UniCredit Bank AG acted as Joint Global Coordinators and Joint Bookrunners for the offering of the New Convertible Bonds.
MiFID II professionals/ECPs-only/No PRIIPs KID - Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in the EEA.
10.09.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||MTU Aero Engines AG|
|Dachauer Straße 665|
|Phone:||+49 (0)89 14 89-8473|
|Fax:||+49 (0)89 14 89-95292|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||871379|
|End of News||DGAP News Service|