Press ReleaseZąbki, 21 April 2010
J.W. Construction – issue of convertible bonds
J.W. Construction Holding S.A. has informed that it is going to issue convertible bonds at the maximum amount of PLN 120 million. The Company has convened the Annual General Meeting for 18 May 2010, at which the Shareholders will resolve the issue of convertible bonds and conditional increase of capital. The acquired funds will be allocated for financing additional, new residential and office projects. The objectives of the issue also allow for financing the announced acquisition of an executive and building company.
The issue of bonds convertible into shares is connected with acquisition of financing guaranteeing continued development of J.W. Construction Holding S.A. in the next years and a visible growth in its value. J.W. Construction Holding S.A. prepares itself to implement additional residential and commercial projects i.a. in Warsaw, Katowice and Łódź.
The present residential offer, together with projects prepared for launch on own plots in 2010, guarantees a sales portfolio of the Company at least for the next two years.
“The Company has very good relations with financial institutions and it does not have any problems to obtain loans for financing the currently implemented investments. Presently we are closing the financing for an office investment – Jerozolimskie Point.”, says Małgorzata Szwarc-Sroka, Economic Director of J.W. Construction Holding S.A.
“Funds acquired by the Company under the issue of convertible bonds at the maximum amount of PLN 120 million will allow to finance additional residential and office projects enhancing our sales offer for the years 2012-2014 and the next ones.”, adds Małgorzata Szwarc-Sroka.
Moreover, the Company does not rule out that funds from the issue may be used for the announced acquisition of a company operating in the building and executive sector. The purpose of the acquisition will be to reinforce the executive potential of the holding, which will translate into the growth in its value.
In the opinion of the Management Board the capital acquired by the Company by way of issue of convertible bonds will allow to diversify the sources of investment financing. It is also a new instrument for acquiring funds from a broader range of potential investors, including the ones interested mainly in debt securities.
“The option of conversion, embedded in that instruments, will allow the Company to place among potential investors the bonds with relatively lower interest than for bonds issued without the right to shares of the Company. Moreover, the issue of convertible bonds is a “quasi” issue of shares made with a premium to the current stock exchange price.”, comments Małgorzata Szwarc-Sroka, Economic Director of J.W. Construction Holding S.A.
Bondholders will be entitled to the right of conversion of bonds to D-class shares. For that purpose the Company will allocate the maximum of 6,900,000 ordinary bearer shares with a par value of PLN 0.20 each. The Management Board of the Company, by way of resolution taken before commencement of the subscription, will provide for specific terms and conditions of issue, including the amount of interest, redemption date, while such redemption period will not be longer than 5 years of the date of issue, and the conversion price.