LEG Immobilien : announces early redemption of its convertible bond 2014/2021 and expects conversion of bond into new shares

LEG Immobilien AG is exercising its option to redeem the convertible bond 2014/2021 (ISIN DE000LEG1CB5, WKN LEG1CB) in accordance with the terms and conditions of the bond. Prerequisite to exercise this option was that the LEG share price on XETRA amounted to at least 130 per cent of the prevailing conversion price of EUR 51.5315 per share on 20 out of 30 consecutive trading days since 22 July 2019. The company will redeem the convertible bond on 4 October 2019 at its principal amount of EUR 300 million plus accrued interest, to the extent it is not converted previously.

Given that the market value of the shares underlying the bond is significantly higher than the principal amount of the bond, the company is assuming that the decision to exercise its option to redeem will lead bondholders to convert into new shares. In case of a full conversion of the bond, around 5.82 million new shares will be created. As a result, the total number of shares outstanding would increase to up to 69.01 million. The new shares will bear full dividend and voting rights from the financial year 2019.

The conversion of debt to equity will reduce the company's loan to value ratio (LTV), thereby further strengthening LEG Immobilien AG's balance sheet.

'By triggering an early conversion LEG secures its conservative financing profile and sends a clear signal for the continuation of its acquisition strategy. LEG is therefore well positioned for the next growth step', says Lars von Lackum, CEO and CFO of LEG Immobilien AG.

About LEG

With around 131,000 rental properties and more than 350,000 residents, LEG is one of Germany's leading listed housing companies. The company has eight branch offices in North Rhine-Westphalia, providing personal local contact. LEG generated rental and lease income of around EUR 767 million in the 2018 financial year.

Investor Relations contact:

Burkhard Sawazki

Tel. [phone]
e-mail: burkhard.sawazki[at]­leg.ag

Press contact:

Sabine Jeschke

Tel. [phone]
e-mail: sabine.jeschke[at]­leg-wohnen.de

Disclaimer

This publication constitutes neither a solicitation to buy nor an offer to sell securities. To the extent that we express forecasts or expectations or make forward-looking statements in this document, these statements can entail known and unknown risks and uncertainties. These statements reflect the intentions, opinions or current expectations and assumptions of LEG Immobilien AG. The forward-looking statements are based on current planning, estimates and forecasts, which LEG Immobilien AG has made to the best of its knowledge, but that are not a statement on their future accuracy. Actual results and developments can therefore differ materially from the expectations and assumptions expressed.