PORR AG places EUR 150m hybrid convertible bond
Construction company PORR AG has successfully placed a EUR 150 million hybrid convertible bond, which can be converted into the company's shares. The proceeds will be used to increase financial flexibility and accelerate growth.
PORR AG, a construction group, has successfully placed a EUR 150 million deeply subordinated perpetual hybrid convertible bond. The bond is convertible into new and/or existing ordinary shares of the company until the first reset date. PORR intends to use the net proceeds to enhance its financial flexibility and accelerate organic and/or inorganic growth, as well as for general corporate purposes.
CEO Karl-Heinz Strauss stated that the placement provides "financial strength to further improve our strong market positions in our seven home markets." He added that the company's "clear strategic focus remains on Intelligent Growth with Green and Lean," and the funds will provide the necessary flexibility to accelerate growth initiatives.
The bond carries an initial interest rate of 2.750% per annum until September 30, 2031. Thereafter, the interest rate will be the sum of the applicable 5-year Euro Mid-Swap rate and a margin of 900 basis points. The company has the option to defer interest payments in whole or in part. The initial conversion price is EUR 42.90, representing a 30% premium over the reference share price. The shares underlying the bond will initially represent approximately 3.5 million shares, or about 8.9% of PORR's issued share capital.
As part of the offering, a concurrent accelerated bookbuilding was conducted for existing shares to facilitate hedging activities for certain bond subscribers. PORR did not receive any proceeds from these share sales. The bond is expected to be admitted to trading on the Vienna MTF of the Vienna Stock Exchange. BofA Securities, Raiffeisen Bank International, ODDO BHF, and UniCredit acted as Joint Global Coordinators and Bookrunners.