New Bond Issue and Exchange Offer
- New bond of up to EUR 100 million with a term of five years and a coupon of 3.125% p.a. (possibility to increase the volume to up to EUR 120 million)
- Exchange offer to holders of the UBM-Bond 2014-2019 (ISIN: AT0000A185Y1)
UBM Development AG (“UBM” or “Issuer”) has decided today to issue a new corporate bond with a term of five years, a coupon of 3.125% p.a and a denomination of EUR 500. The issue volume of the UBM-Bond 2018-2023 (the “2018 UBM-Bond”) amounts to up to EUR 100 million, with the possibility to increase the volume to up to EUR 120 million and depends in particular on the acceptance rate of the exchange offer.
Under the exchange offer, holders of notes of the 4.875% UBM-Bond 2014-2019 (ISIN: AT0000A185Y1) issued in 2014 (the “2014 UBM-Bond”) with a denomination of EUR 500 will be invited to provide offers for the exchange into the 2018 UBM-Bond to be newly issued by the Issuer. The exchange period will begin on 22 October 2018 and will presumably end on or about 7 November 2018. In the event of the acceptance of the exchange offer, holders of notes of the 2014 UBM-Bond will receive one new note of the 2018 UBM-Bond for one existing note of the 2014 UBM-Bond (exchange ratio 1:1) as well as an additional cash settlement amount of EUR 18.68 each per exchanged note of the 2014 UBM-Bond. The cash settlement amount is calculated from the pro rata accrued interest as well as an additional amount. The accrued interest amounts to EUR 8.68 (per note of the 2014 UBM-Bond). The additional amount has been determined at EUR 10.00 (per note of the 2014 UBM-Bond).
Following the end of the exchange offer, the 2018 UBM-Bond will be offered for subscription in the remaining extent in Austria, Germany and Luxembourg in the course of a public prospectus-based offering and in further countries in the course of a private placement.
The admission of the 2018 UBM-Bond to trading on the Official Market (Corporates Prime) of the Vienna Stock Exchange is intended.
Disclaimer: This document constitutes neither an offer to sell nor a solicitation to buy or subscribe for securities. The information contained herein is not for release, directly or indirectly, in or into the United States of America, Australia, Canada or Japan. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful.
A public prospectus-based offering of notes of the 2018 UBM-Bond shall be conducted exclusively in Austria, Germany and Luxembourg (the “Offering”) to investors resident in such countries on the basis of a securities prospectus prepared pursuant to CMA (Capital Market Act; Kapitalmarktgesetz) which was approved by the Austrian Financial Markets Authority on 19 October 2018, published in the way intended and notified to the German Financial Supervisory Authority (BaFin) in Germany as well as to the Commission de Surveillance du Secteur Financier in Luxembourg, including any supplements thereto (together the “Prospectus”). The Prospectus was published in electronic form on the website of the Issuer under www.ubm-development.com, sub-site “investor relations.”, sub-site “bonds.”. In connection with the Offering of notes of the 2018 UBM-Bond, only the information in the Prospectus are binding, the information in this publication shall not be binding. Prior to any investment decision, investors should make themselves familiar with the content of the Prospectus, in particular with the references to risks, taxes and conflicts of interest, and should obtain personally advice with consideration of their individual asset and investment situation. An investment in securities is subject to risks. Investors bear the credit risk of the Issuer. In the event of insolvency and/or liquidation of the Issuer, amounts payable on interest and/or principal may be less; even a total loss of the capital invested is possible in such cases.