TAG Immobilien AG successfully concludes the offer for early conversion of its convertible bond 2012/2019 with an acceptance quota of 94%

DGAP-Media / 12.07.2016 / 18:11

NOT FOR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN,
THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF
THE UNITED STATES OF AMERICA OR THE DISTRICT OF COLUMBIA (THE "UNITED
STATES").

PRESS RELEASE

Hamburg (12 July 2016) - TAG Immobilien AG successfully concludes the offer
for early conversion of its convertible bond 2012/2019 with an acceptance
quota of 94% / Announcement of clean-up call for remaining outstanding
convertible bonds / Further strengthening of capital and financing
structure of TAG by means of early conversion offer, which has been
successfully conducted in Germany for the first time

Today, TAG Immobilien AG ("TAG" or the "Company") successfully concluded
the early conversion offer (the "Transaction") for all 5.50% outstanding
convertible bonds maturing in June 2019 with a total nominal value of EUR
74.5 million (ISIN DE000A1PGZM3, the "Convertible Bond"). Until the end of
the offer period on 12 July 2016 16:00 CEST, bond holders accepted the
early conversion offer for bonds with a nominal value of EUR 70.1 million.
This corresponds to an acceptance quota of 94%.

Bond holders who accepted the offer will receive the underlying number of
shares from the conditional capital according to the terms and conditions
of the Convertible Bond plus a cash payment to compensate for any remaining
interest payments or the difference of the value of the underlying shares
compared to the market value of the Convertible Bond at the time of the
announcement of the offer on 30 June 2016 (plus an incentive premium) at an
amount of 12.75% of the nominal value of the Convertible Bond. Based on the
acceptance quota of 94% the total cash payment amounts to EUR 8.9 million.
The Transaction will be settled on 18 July 2016.

With the conclusion of the Transaction, less than 20% of the original
nominal value of the Convertible Bond of EUR 85.3 million will remain
outstanding. The Company plans to call these remaining bonds according to
the terms and condition of the Convertible Bond ("Clean-up Call"). The
Company will issue a separate announcement with respect to the Clean-up
Call.

The Transaction allows for a strengthening of the TAG capital structure
even before the regular maturity date in June 2019 and thus fits into the
management's long-term initiative to continuously optimize the capital
structure of the Company. The Convertible Bond has traded in the money and
hence the Transaction will not lead to an additional dilution for the
shareholders of TAG. The Transaction will reduce the Company's loan-to-
value (LTV) from 61.0% to approx. 59.3%, based on the financials in the