DLA Piper advises UBM on conversion and new issue of bonds

DLA Piper has advised UBM Realitätenentwicklung Aktiengesellschaft on the successful placement of a €160m (£127m) corporate bond. Corporate partner Christian Temmel acted as transaction counsel for the joint lead manager Raiffeisen Bank International, IKB Deutsche Industriebank and the issuer.

The bond, with a term of five years, was offered to private and institutional investors and placed particularly in Austria, Germany and Luxembourg. Temmel said: ‘A bond exchange was combined with the new issue of a bond — that’s unique.’

Investors of UBM bonds issued in 2010 and 2011 have exchanged them in the nominal value of more than €70m into a new loan, and after the exchange offer again almost €90m on the capital markets were recorded during the cash subscription possibility. The offer was made on the basis of a prospectus approved by the Austrian FMA, which was notified in Germany and Luxembourg. In addition, the new bond was offered at the Frankfurt Stock Exchange.