The technology specialist HÖRMANN Industries GmbH has successfully placed its new corporate bond (German Securities Code Number (WKN): A2TSCH, ISIN: NO0010851728) with a total volume of EUR 50 million. The issue was concluded early at 8:30 a.m. on 27 May 2019 due to the extremely high level of investor demand, with the bond being several times oversubscribed. The subscription period was originally scheduled to end on 28 May 2019. The HÖRMANN Industries 2019/2024 bond enjoyed strong demand among domestic and foreign institutional investors as well as private investors. The annual fixed interest rate is 4.5%, as was the case with the HÖRMANN 2016/2021 bond.

HÖRMANN Industries presented an offer in three parts, comprising a conversion for the 2016/2021 bond, an over-allotment option for existing bondholders and a resubscription option. The conversion rate is roughly 50% and will be covered by an allocation of roughly 80%. The option to acquire multiple subscriptions was not provided. All orders placed via the Frankfurt Stock Exchange were allocated in full up to a volume of EUR 2,000 each. The start of trading on the Open Market of the Frankfurt Stock Exchange (pre-issue trading) is scheduled for 28 May 2019, with listing in the Nordic ABM segment of the Oslo Stock Exchange due to follow within six months of the issue date. The issue and value date is 6 June 2019.

Johann Schmid-Davis, CFO of HÖRMANN Industries GmbH, commented, ‘We are delighted to see such enormous interest from investors, which we believe vindicates our clear commitment to the capital market, and we would like to thank them for demonstrating their faith in us. The transaction on this occasion was more complex than our two previous bond issues in 2013 and 2016 and required some more detailed explanation. However, the outcome is evidence that we have firmly established ourselves as a dependable partner on the capital market. With the 2019/2024 bond, we are illustrating our ongoing commitment to a diversified financing structure, which will involve taking targeted action to refine our four successful divisions.’

The net issue proceeds from the new bond after conversion will be used to refinance the outstanding portions of the 2016/2021 bond, which will be terminated prematurely on 21 November 2019. The funds raised beyond that will be used to continue optimising production infrastructure in the Automotive division and for additional acquisitions in the Engineering and Services divisions.

Current bondholders who do not accept the conversion offer will receive repayments of 101.5% of the nominal values of their bonds, plus accrued interest, on 21 November 2019.

The issue has been overseen by Pareto Securities and IKB Deutsche Industriebank AG, acting as joint lead managers, with Clifford Chance serving as legal advisers and IR.on AG as communications consultants.