LEG places €300m in first bond issue since last year’s IPO

Listed German residential property company LEG Immobilien has placed €300m in convertible bonds with institutional investors to diversify its financing sources and support its growth strategy. The bond issue is the company's first since it was listed on the stock exchange a year ago.

LEG said the senior, unsecured bonds will mature in 2021 (7.2 years) and be convertible into around 4.8 million shares, representing 9.1% of the company's outstanding share capital. The semi-annual coupon was set at 0.50% per annum and the initial conversion premium was fixed at 30% above the reference share price of €47.99, corresponding to an initial conversion price of €62.39

The Düsseldorf-based LEG Immobilien is one of Germany’s largest housing companies with more than 95,000 rental properties and more than 260,000 tenants. In its latest report the group said it was targeting acquisitions of more than 10,000 further units by the end of 2014, of which it has now bought 6,700.