Rocket Internet Issues EUR550 Million Convertible Bond

Convertible bond

Rocket Internet has announced that it has issued a convertible bond valued at EUR550 million. The company did not however, state what the fund will be used for.

The bond has a seven years tenor, therefore bondholders will get their principal by 2022. The coupon rate is 3%. A unit of the bond is set EUR100,000. Other features of the bond includes

  • Principal Amount: EUR 100,000 per bond
  • Maturity Date: 22 July 2022 (7 years)
  • Issue Price: 100% of the Principal Amount
  • Principal Amount Coupon: 3.00% per annum, payable semi-annually (Act/Act (ICMA) day count fraction)
  • Reference Price: EUR 35.2115 per Share Conversion
  • Premium: 35.0% above the Reference
  • Price Conversion Price: EUR 47.5355, subject to adjustment as provided in the Terms and Conditions
  • Conversion Right: Unless previously redeemed, or purchased and cancelled, the Bonds will be convertible at the option of the holders during the Conversion Period into Shares of the Issuer at the prevailing Conversion Ratio.
  • To exercise the Conversion Right, the Holder must deliver the conversion notice which must include a certification that the Holder or, if the Holder is a broker-dealer acting on behalf of a customer, such customer: (i) is not a U.S. person as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended or (ii) is a qualified purchaser (within the meaning of the U.S. Investment Company Act of 1940, as amended, and related rules). In this case, the Conversion Notice has to relate to Bonds with an aggregate Principal Amount of at least EUR 3,000,000.

The bond is not rated unlike other bonds. Investors are required to determine their interest.

Rocket Internet builds and invests in Internet companies that take proven online business models to new, fast-growing markets.

 

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