DGAP-News

Deutsche Wohnen AG successfully places EUR 800 million new convertible bonds and cash capital increase with gross proceeds of c. EUR 545 million - Seite 2

The New Convertible Bonds have been placed solely to institutional investors in certain jurisdictions via a private placement. The New Convertible Bonds are expected to be issued by Deutsche Wohnen on or around February 27, 2017 and shortly thereafter are to be admitted to trading on the non-regulated open market segment (Freiverkehr) of the Frankfurt Stock Exchange.

Deutsche Wohnen is entitled to redeem the New Convertible Bonds from August 17, 2022 if the stock exchange price of the bearer shares of Deutsche Wohnen amounts to at least 130 % of the conversion price over a certain period. The holders of the New Convertible Bonds will not be entitled to an investor put.

Deutsche Wohnen also successfully placed the cash capital increase announced today. A total of 17,174,110 new shares were placed in a private placement by way of an accelerated bookbuilding with institutional investors in Germany and abroad, while shareholders' subscription rights were excluded. The placement price amounts to EUR 31.75 per share or a tight discount of 2.1 % to the XETRA closing price of Deutsche Wohnen before announcement of the transaction.

Following the registration of the capital increase with the commercial register, which is expected to take place on February 23, 2017, the registered share capital of Deutsche Wohnen will increase by 5.1 % from EUR 337,480,450 by EUR 17,174,110 to EUR 354,654,560 through the issue of 17,174,110 new no-par value bearer shares, each with a notional value of the Company's share capital of EUR 1.00. The new shares will carry full dividend rights as of January 2016. The new shares are expected to be included in the existing quotation for the company's bearer shares on the Frankfurt Stock Exchange on February 27, 2017.

Deutsche Wohnen achieves gross proceeds amounting to approximately EUR 800 million from the New Convertible Bonds and approximately EUR 545 million from the capital increase. The proceeds from the Capital Increase will be used in most part the repurchase of its outstanding 2020 Convertible Bonds by way of a tender offer. The remaining proceeds from the Capital Increase and the proceeds from the issue of the New Convertible Bonds will primarily be used to finance the future acquisition pipeline, the Pegasus nursing home portfolio acquisition announced in Q3 2016 and other smaller recent acquisitions.