September 26, 2017 / 7:50 AM / a year ago

CA Immo to raise 200 mln eur via convertible notes to refinance debt

VIENNA, Sept 26 (Reuters) - CA Immobilien will issue 200 million euros ($237 million) in convertible bonds to refinance debt and for other business purposes, the Austrian property firm said on Tuesday.

Part of the money will be used to repay project-financed bank loans in central and eastern Europe or to substitute planned bank financing, it said.

CA Immo reported earnings before interest, tax, depreciation and amortisation (EBITDA) of 72.5 million euros on rental income of 88.6 million euros for the six months to June 30. Its net debt stood at 1.28 billion euros.

The group, which saw revaluation losses in its core eastern European assets, said in its half-year report that it is considering expanding its business and engaging in the indirect property fund business.

The Vienna-based group is also considering a merger with rival Immofinanz, but this plan is on hold as long as the latter does not dispose of its Russia portfolio.

The convertible bonds will have a maturity of 7.5 years. The semi-annual coupon is expected to be between 0.5 and 1 percent per year.

It will offer the bonds via an accelerated bookbuilding process to institutional investors outside the United States.

Pricing is expected on Tuesday with settlement on or around Oct. 4, it said.

$1 = 0.8444 euros Reporting by Kirsti Knolle; editing by Jason Neely

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