Cromwell Property Group Announces Regarding Successfully Prices of Convertible Bond Offer

Cromwell Property Group (ASX: CMW) announced that it has successfully priced the issue of €230 million 2.5 per cent guaranteed convertible bonds due 2025 (2025 Convertible Bonds) announced yesterday (21 March 2018).

The 2025 Convertible Bonds will pay a fixed coupon rate of 2.5% per annum and be convertible into Cromwell stapled securities at a price of A$1.177 per stapled security (subject to adjustments), which reflects a premium of 7.5% to the Cromwell stapled security closing price of A$1.095 on 21 March 2018.

Cromwell is in the process of repurchasing up to €150 million of its 2020 Convertible Bonds. Cromwell has agreed to repurchase €92.7 million of the 2020 Convertible Bonds. Under the terms of the 2020 Convertible Bonds, the Issuer may from time to time repurchase additional bonds from the market and has an option to redeem any remaining outstanding bonds at 100% of face value plus accrued but unpaid interest if 10% or less of the original issue size is outstanding.

Settlement of the 2025 Convertible Bonds is expected to be completed on 29 March 2018. The proceeds will be used to fund the repurchase of up to €150 million of its 2020 Convertible Bonds, repay other financial indebtedness and for general corporate purposes.

Credit Suisse (Singapore) Limited and Goldman Sachs Australia Pty Ltd acted as Joint Lead Managers on the transaction.


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