Rheinmetall places EUR 1 billion in convertible bonds
Rheinmetall AG has successfully placed EUR 1 billion in convertible bonds across two series. The company plans to use the funds to finance its acquisition of Expal Systems S.A. and support strategic growth initiatives.
Düsseldorf – Rheinmetall AG announced on January 31, 2023, the successful placement of EUR 1 billion in convertible bonds. The offering comprised two series: EUR 500 million due February 7, 2028, and EUR 500 million due February 7, 2030.
The company stated that the net proceeds from the bond issuance are intended to finance a significant portion of the acquisition of Expal Systems S.A., which was announced on November 13, 2022. Additional funds will provide strategic flexibility for internal and external growth initiatives and general corporate purposes. The remaining purchase price for Expal Systems is expected to be funded through existing cash and bank loans.
The bonds, with a denomination of EUR 100,000 each, were issued at par. The Series A bonds carry an annual coupon of 1.875%, and the Series B bonds carry 2.250%. The initial conversion price was set at EUR 309.90 per share, representing a 45% premium over the reference price.
Rheinmetall anticipates the settlement of the bonds to occur on or around February 7, 2023. The transaction was managed by BNP Paribas and BofA Securities Europe SA as joint global coordinators. The offering was made to institutional investors outside the United States, Australia, Japan, and South Africa, in compliance with applicable regulations.