LEG Immobilien AG Completes €500 Million Inaugural Unsecured Corporate Bond Offering

January 23, 2017

S&C client LEG Immobilien AG, one of Germany's leading housing companies, completed the offering of its inaugural unsecured corporate bond with an aggregate principal amount of €500 million (approximately $530 million).
 
The bond matures in 2024 and is governed by German law. It bears a fixed-interest rate of 1.250% per annum, is issued in a denomination of €100,000 and listed on the regulated market of the Luxembourg Stock Exchange.
 
The debut bond was offered to institutional investors after several days of a pan-European roadshow and was met with great demand when launched, generating an order-book of around €2 billion (approximately $2.1 billion). The net proceeds from the issuance of the notes will mainly be used to refinance existing subsidized loans and bank loans, as well as general corporate purposes. With the refinancing, LEG Immobilien AG will reduce its average interest rate to less than 2.0 percent while the average corporate debt maturity will remain at approximately 10 years.
 
The S&C core team included Carsten Berrar, Max Birke, Wolfram von Frankenberg and Veronika Montes, who advised on German law matters. Michael Orchowski and Slki Hong advised on U.S. tax matters.