Corporate News

23/02/2016 | Corporate News

Fair Value REIT-AG repays convertible bond 2015/2020 prematurely


Munich, 23 February 2016 – Fair Value REIT-AG (ISIN DE000A0MW975) has prematurely repaid the convertible bond 2015/2020 (ISIN DE000A13SAB8) with a total nominal value of €8.46 million that was issued on 19 January 2015 at an interest rate of 4.5% p.a. The convertible bond originally had a term until 19 January 2020 and had been listed on the Quotation Board of the Frankfurt Stock Exchange since 19 January 2015. The convertible bond has already been delisted due to early repayment.


The convertible bond was repaid early at the request of the creditors. Under the terms of the bond, they had the right as a result of the change of control at Fair Value REIT-AG that occurred on 21 December 2015 to demand it be repaid early at 103% of the nominal amount plus accrued interest on 19 February 2016.


Frank Schaich, CEO of Fair Value REIT-AG, explains: “The repayment amount was refinanced using two loans with terms of three and four years and which are partially secured by mortgages. At around 3.7% p.a., the weighted average effective interest rate is significantly lower than the nominal interest expense for the convertible bond.”


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A REIT – Higher Return for Investors

REIT stands for Real Estate Investment Trust. The assets of these listed companies in Germany consist mainly of real estate and investments in other real estate companies.


At the international level, REITs have been established for many years. On 1 January 2007, they were introduced in Germany as well.


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Fair Value REIT-AG