voestalpine AG, one of Europe’s leading producers of steel products for the automotive, construction, general manufacturing, white goods and railway industries, is launching a convertible bond offering with an aggregate principal base amount of up to EUR 200 million within an international private placement (the "Offering"). The bonds will mature on 21 July 2010 and are callable by the issuer on or after 1 January 2009 subject to a 130% trigger. The issue and the redemption price are set at 100% of par. The bonds are offered to investors with an annual coupon range of 1.20% to 1.70% and a conversion premium range of 30.0% to 35.0% over a reference price of the voestalpine AG shares to be set at pricing. The final terms are expected to be set today.
The Offering includes an extension clause of up to EUR 30 million (15%). Additionally, voestalpine AG has granted Deutsche Bank a Greenshoe option of up to EUR 20 million (10%) to cover over-allotments (if any) exercisable until 19 July 2005. The issue size can therefore reach up to EUR 250 million. The issuer expects to list the bonds on the Vienna Stock Exchange. The Offering will be carried out as a private placement. A public offer in Austria will not take place. The bonds will be offered to institutional investors outside the United States, Canada, Australia and Japan. The pre-emptive rights of the shareholders of voestalpine AG are excluded.