Citycon Oyj has repurchased convertible capital bonds (the “Convertible Bonds”) issued on 2nd August 2006 from its main shareholder, Gazit-Globe Ltd. with face value of EUR 20 million and EUR 1 million from an institutional investor. The repurchase price was 100.4% which is, according to the company’s knowledge, in accordance with the market price for the Convertible Bonds. According to the company’s knowledge, Gazit-Globe Ltd. owned 48 % of the total shares and votes in Citycon Oyj on 30th June 2012. The decision to repurchase the Convertible Bonds was prepared by the company’s members of the Board of Directors independent of Gazit-Globe Ltd.
The amount of EUR 21 million of nominal value repurchased by the company corresponding to 420 bonds with nominal value of EUR 50.000 corresponding to 19 % of the aggregate amount of the Convertible Bonds maturing in 2013. The deal was executed on 13 August 2012.
Including the previous buybacks concluded by Citycon, the company has repurchased Convertible Bonds to the aggregate amount of EUR 68.75 million of nominal value corresponding to approximately 63 % of the aggregate amount of the Convertible Bonds. The capital of the Convertible Bonds listed on 22nd August 2006 amounts to EUR 110 million with the fixed annual interest rate of 4.50%.
The repurchases of the bonds have been executed in accordance with Section 7 (f) of the terms and conditions of the Convertible Bonds. In accordance with the terms and conditions of the Convertible Bonds Citycon Oyj will cancel the repurchased bonds. The repurchase was executed as part of the company’s refinancing plan and it will reduce Citycon’s financing costs. In accordance with the terms and conditions, the Convertible Bonds are due to be repaid at the maturity date in August 2013.
Helsinki 13 August 2012
CITYCON OYJ
Marcel Kokkeel
CEO
For further information, please contact:
Eero Sihvonen, Executive VP and CFO
Tel +358 20 766 4459 or +358 50 557 9137
eero.sihvonen@citycon.fi
Distribution:
NASDAQ OMX Helsinki
Major media
www.citycon.com