DGAP-Adhoc

TAG offers early conversion to holders of 2012/2019 convertible bonds

TAG Immobilien AG / Key word(s): Miscellaneous/Bond

30.06.2016 08:12

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Ad hoc announcement

TAG offers early conversion to holders of 2012/2019 convertible bonds

Hamburg, 30 June 2016 - Today the Management Board of TAG Immobilien AG
('TAG' or the 'Company'), with the Supervisory Board's approval, agreed to
offer early conversion for all outstanding 5.50% convertible bonds, with a
nominal value of EUR 74.5 million and a maturity of June 2019 (ISIN
DE000A1PGZM3, the 'Convertible Bond') (the 'Transaction').

Besides the delivery of the underlying shares from the contingent capital
in accordance with the terms of the Convertible Bond (to a maximum of
approx. 9.97 million shares), the offer includes a cash payment to
compensate for the outstanding interest payments and/or the difference
between the value of the conversion shares compared to the current market
value of the Convertible Bond (plus a premium payment), in the amount of
12.75% on the principal amount of the Convertible Bond. To accept the
offer, investors can exercise their conversion rights prematurely within
the offer period. Assuming a full early conversion, this cash payment would
amount to approx. EUR 9.5 million.

The Transaction strengthens the Company's equity base prior to the
Convertible Bond's regular due date in June 2019, and is part of the
Management Board's long-term initiative to continuously optimise the
Company's capital structure. As the Convertible Bond is already trading in
the money, early conversion does not lead to any additional dilution for
TAG shareholders. The Transaction will reduce the Company's loan-to-value
(LTV) from 61.0% to approx. 59.3%, based on the financials in the IFRS
interim consolidated financial statements as of 31 March 2016 and full
early conversion assumed. At the same, the conversions will reduce interest
costs by up to approx. EUR 4.1 million per year.

Investors who exercise their conversion right for a bond unit with a
nominal value of EUR 100,000 receive 13.381,69 TAG shares and a cash amount
of EUR 12,750.00. In accordance with the terms and conditions, the Company
made the semi-annual coupon payment which fell due on 28 June. Under this
offer, the Company will not pay any accrued interest beyond this.

Holders of the Convertible Bond can accept the offer by exercising some or
all of their conversion rights during the offer period from 30 June to 8
July 2016, 16:00 CET in accordance with the terms and conditions of the
Convertible Bond. The cash compensation shall be made by 18 July 2016. The
Company reserves the right to declare all of the remaining outstanding
units of the Convertible Bond due in accordance with its terms and
conditions if less than 20% of the original nominal amount of EUR 85.3
million is outstanding after the offer ends (Clean-up Call).

The offer is subject to various conditions that are described in detail in
the offer document, which can be requested from Credit Suisse Securities
(Europe) Limited, the Sole Dealer Manager. VICTORIAPARTNERS serves as TAG's
sole financial advisor in the Transaction.




Contact:
TAG Immobilien AG
Head of Investor&Public Relations
Dominique Mann
Tel. [phone] - 300
Fax [phone]
[e-mail]


30.06.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap.de

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Language: English
Company: TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: http://www.tag-ag.com
ISIN: DE0008303504, XS0954227210, DE000A12T101
WKN: 830350, A1TNFU, A12T10
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
Hanover, Stuttgart; Terminbörse EUREX

End of Announcement DGAP News-Service

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