Supported by Noerr, an incentivised early conversion of a convertible bond in exchange for shares has been carried out for the first time ever in the German capital markets. TAG Immobilien AG (TAG) successfully concluded the offer for early conversion of the 2012/2019 convertible bond with 94% take-up.

In total, holders of the convertible bond with a nominal value of €70.1 million took up the offer for early conversion. Besides delivery of the underlying shares from the conditional capital in accordance with the conditions of the convertible bond, they receive an additional cash payment to compensate for the outstanding interest payments. With this transaction, TAG is strengthening the company’s equity base even before the regular maturity date of the convertible bond. As the convertible bond is already trading in-the-money, early conversion does not lead to any additional dilution for TAG shareholders.

TAG relied on advice from Noerr partners Dr Laurenz Wieneke and Dr Stephan Schulz during the innovative transaction. The Frankfurt-based capital market law experts regularly advise the company on capital markets and real estate transactions. A team led by Laurenz Wieneke previously advised TAG on issuing the convertible bond back in 2012.

Advisors to TAG Immobilien AG: Noerr LLP
Dr Laurenz Wieneke, Dr Stephan Schulz, Dr Fabian Hohl (all capital markets law, Frankfurt)