Peach Property Group AG will issue an unlimited-term subordinated hybrid warrant bond with a CHF50.0 million target volume that may be raised to as much as CHF100.0 million.
The bond will carry an annual interest coupon of 1.75% until June 22, 2023, when the company may opt to terminate the bond. Afterwards, the coupon will equal the prevailing capital market interest rate plus 9.25% per annum.
Each bond will provide the holder four warrants for the purchase of registered Peach Property shares, while each warrant will give the holder the option to subscribe to 1 registered share at an exercise price of CHF25. The exercise period will run from June 25, 2018, to June 25, 2021.
Peach Property said existing shareholders may subscribe to the bond from June 4 to June 15. Ownership of 54.43388 shares entitles the holder to subscribe to 1 bond.
Peach Property plans to use the proceeds from the offering to extend its portfolio and redeem liabilities.
The Switzerland-headquartered real estate company will offer the unsubscribed bonds via a private placement to shareholders and other investors in a bookbuilding procedure.
Peach Property expects the listing of the bonds cum option, bonds ex option and the warrants to take place June 25 at the SIX Swiss Exchange.
