- Buyers Guide
Military Microwaves Supplement
As part of its refinancing strategy aimed at strengthening the company’s liquidity position and extending its debt maturity profile Infineon Technologies AG has launched an offering of guaranteed subordinated convertible bonds that will be issued by Infineon Technologies Holding B.V., a wholly-owned subsidiary of Infineon. The offering was substantially oversubscribed.
The conversion price has been set at €2.61, which represents a premium of 25 per cent. The number of shares underlying the Bonds will be 74,950,000 registered ordinary shares, with a notional par value of €2.00 per share each. The aggregate principal amount will be €195.6 M.
The Bonds will mature in five years and will be issued at 92.8 per cent of the principal amount, which means that they are positioned at the top end of the bookbuilding range for the disagio. The issue proceeds will amount to €181.5 M. The fixed coupon of the Bonds has been set at 7.50 per cent per annum, payable semi-annually in arrears. Unless the Bonds are previously converted, they will be redeemed at maturity at 100 per cent of their principal amount.
“With the successful placement of this convertible bond, we took advantage of a positive market environment in a quick and consequent manner. This next important step in our overall refinancing is more convincing evidence of the confidence of the market in our company”, said CFO Dr. Marco Schröter.
Closing and settlement of the Bonds is expected to take place on 26 May 2009. It is intended to include the Bonds to be traded on the open market (Freiverkehr) of the Frankfurt Stock Exchange; however issuance of the Bonds will not be conditional upon obtaining such inclusion to trading.
Get access to premium content and e-newsletters by registering on the web site. You can also subscribe to Microwave Journal magazine.