Allen & Overy LLP has advised the bank consortium consisting of BNP Paribas and Credit Suisse Securities (Europe) Limited as joint-lead managers as well as Commerzbank AG, HSBC Trinkaus & Burkhardt AG, Landesbank Baden-Württemberg and UniCredit Bank AG as co-lead-managers in connection with the successful issuance of unsubordinated unsecured convertible bonds of Klöckner & Co SE with a total volume of around EUR 150 million and a maturity of 7 years.

The bonds will be issued by Klöckner & Co Financial Services S.A., a wholly-owned Luxembourg-based subsidiary of Klöckner & Co SE. They were placed in an accelerated bookbuilding only to institutional investors outside of the U.S.
The bonds are guaranteed by Klöckner & Co SE and will be convertible into new or existing ordinary registered shares of Klöckner & Co SE. The coupon was set at 2.00% per annum and the conversion premium was fixed at 27.5%, corresponding to an initial conversion price of EUR 14.82. The pre-emptive rights of shareholders of Klöckner & Co SE to subscribe for the bonds have been excluded. The bonds will be included to trading in the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.

Klöckner & Co SE intends to use the proceeds from the issue of the bonds for general corporate purposes. With sales of around EUR 6.4 billion in fiscal 2015 and around 9,200 employees the group is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service center companies worldwide.

The Allen & Overy team comprised partner Dr Knut Sauer (transaction lead), senior associate Simon Weiß and associate Nadine Kämper (all International Capital Markets, Frankfurt). Partner Marc O. Plepelits und senior associate Martin Schmidt (both US Corporate Finance, Frankfurt) advised on U.S. law aspects.