DGAP-News

MTU Aero Engines AG: MTU Aero Engines AG successfully places convertible bond

DGAP-News: MTU Aero Engines AG / Key word(s): Bond
MTU Aero Engines AG: MTU Aero Engines AG successfully places convertible
bond

11.05.2016 / 15:24
The issuer is solely responsible for the content of this announcement.

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Press Release

Not for release, publication or distribution, directly or indirectly, in or
into the United States, Australia, Canada or Japan or any other
jurisdiction in which the distribution or release would be unlawful.

MTU Aero Engines AG successfully places convertible bond

- Issue volume of EUR 500 million, 7 year maturity

- 0.125% coupon and 50% conversion premium

Munich, 11 May 2016: MTU Aero Engines AG (the "Company"), announces the
successful placement of senior, unsecured convertible bonds in an aggregate
principal amount of EUR 500 million (the "Bonds"), convertible into new
and/or existing no-par value ordinary registered shares of the Company (the
"Ordinary Shares").

The Bonds will have a maturity of 7 years and will be issued in a
denomination of EUR 100,000 each. The Bonds will bear interest at a rate of
0.125%, payable annually in arrear. The initial conversion price was set at
EUR 124.7701, representing a conversion premium of 50% over the reference
share price.

The Company will have the option to redeem the Bonds at their principal
amount (plus accrued but unpaid interest) in accordance with the terms and
conditions of the Bonds at any time (i) on or after 16 June 2020, 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 Bonds remains outstanding.

The Company intends to use the net proceeds of the offering for the
optimization of its debt structure, e.g. for the repayment of the
outstanding bond due in June 2017, continued investment in accordance with
its communicated investment policy and for general corporate purposes

The Bonds were placed in an accelerated bookbuilding only to institutional
investors outside the United States in reliance on Regulation S (Category
1) under the United States Securities Act of 1933 as amended, as well as
outside of Australia, Japan and any other jurisdiction in which offers or
sales of the Bonds would be prohibited by applicable law.

Settlement is expected to take place on or around 17 May 2016.

Goldman Sachs International acted as Sole Global Coordinator for the