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LEG Immobilien To Launch Cash Capital Increase And To Issue New Convertible Bonds

LEG Immobilien AG said it will launch a capital increase against cash contribution with the intention to generate gross proceeds in the amount of about 250 million euros and to issue convertible bonds due 2028 in an aggregate principal amount of about 550 million euros.

LEG plans to use the net proceeds to finance its most recent acquisitions of about 7,500 units as well as for general corporate purposes.

As part of the capital increase and the issue of the convertible bonds, the company has agreed to a lock-up period of 90 days.

The capital increase represents to a notional amount of up to 2.37 million euros or up to 3.4% of the registered share capital, is being made against cash contributions and excluding the shareholders' subscription rights.

The placement price per new share will be determined following the conclusion of an accelerated bookbuilding. The new shares will carry full dividend rights from January 1, 2019, the company said in a statement.

The company noted that the new shares will be admitted to trading on the regulated market (regulierter Markt) without a prospectus and included in the existing quotation for the Company's shares in the sub-segment of the regulated market with additional post-admission obligations (Prime Standard) on the Frankfurt Stock Exchange on or around June 30, 2020.

The convertible bonds will be issued at 100% of their principal amount with a denomination of 100,000 euros per convertible bond and, unless previously converted, repurchased or cancelled, will be redeemed at par at maturity.

The convertible bonds will be offered with a coupon between 0.20% and 0.60% per annum, payable semi-annually in arrear, and a conversion premium between 35% and 40% above the reference share price, which corresponds to the placement price that will be determined in the concurrent share placement.

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