UBM Corporate

Advertisement in the meaning of Art 14 of the Delegated Regulation (EU) 2019/979

• Re-offer price set at 100% – Subscription period starting on 4 November 2019
• Around € 25 million of the 2015-2020 bond exchanged for new bond

Vienna, 4 November 2019 – The cash subscription period for the new 2.750% UBM Bond 2019 (ISIN AT0000A2AX04) with a term of six years (2019-2025) begins today. The cash subscription offer was preceded by an offer to exchange the 2015-2020 bonds for the new six-year 2019 UBM Bond, which was accepted by approximately one third of the holders of the 2015-2020 bonds. A total principal amount of € 25.16m of the 2015-2020 senior notes was exchanged for the new 2019 UBM Bonds, representing approximately 33.55% of the total principal amount of the outstanding 2015-2020 bonds. The exchange period ran until 31 October 2019. Due to the successful exchange offer and strong demand from other retail and institutional investors, the re-offer price was set at 100% of the principal amount by the Issuer in consultation with the Joint Lead Managers. „We are very pleased with the investor feedback to date, the demand for the new bond is well above our expectations – proof of the strong confidence investors have in UBM as a recurring and reliable bond issuer. The market rewards our reliability and our clear commitment to a conservative financial policy,” says Patric Thate, CFO of UBM Development AG. 

Interested investors will be able to subscribe the 2.750% UBM Bond 2019-2025 in the time period of presuambly 4-8 November 2019, subject to early closure. The issue volume of the UBM Bond 2019-2025 amounts to up to € 120m, of which up to € 94,836,000.00 is now available for cash subscription on the basis of the exchange already effected. Due to the amount of the investors’ indications of interest available to the issuer for a subscription within the scope of the cash subscription offer, an early closing of the cash subscription period is likely. The UBM Bond 2019 will be offered for subscription in Austria, Germany and Luxembourg as part of a public offering subject to a prospectus requirement and in other countries as part of a private placement. UBM Development AG plans to use the proceeds from the issue to refinance existing financing and to realise new and existing projects. The planned value date is 13 November 2019. The listing of the UBM Bond 2019 on the Official Market (Corporates Prime) of the Vienna Stock Exchange is intended.

The Offering in detail

Cash-Subscription Offer

¹ Non-institutional investors may subscribe the bonds at the Re-Offer Price, plus a seeling fee of up to 1.5% percentage points, which may be charged by the respective financial intermediary offering the bonds; usual discounts may be granted.

General features of the UBM Bond 2019-2025

Disclaimer:

This document does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. In particular, the information contained herein is not intended for direct or indirect publication in or into the United States of America, Australia, Canada or Japan. In particular, this document and the information contained herein do not constitute or contain any offer of securities for sale or any solicitation of an offer to purchase any securities in the United States, Australia, Canada or Japan or the United Kingdom of Great Britain and Northern Ireland or in any other country in which such offer or solicitation is prohibited.

A public offer the UBM Bonds 2019 subject to a prospectus requirement will be made exclusively in Austria, Germany and Luxembourg (the „Offer”) to investors resident there on the basis of a securities prospectus prepared in accordance with Regulation (EU) 2017/1129 (Prospectus Regulation) issued by the Austrian Financial Market Authority (the „FMA”) on 14 October 2019, published in the intended manner and notified to the Federal Financial Supervisory Authority in the Federal Republic of Germany and the Commission de Surveillance du Secteur Financier in the Grand Duchy of Luxembourg as well as any supplements thereto approved and notified accordingly by the FMA, in particular the supplement to the Prospectus approved on 16 October 2019 (together, the „Prospectus”). The approval of the Prospectus by the FMA is not to be understood as an endorsement of the Offer by the FMA regarding the bonds of the UBM Bond 2019 offered. The Prospectus has been published in electronic form on the issuer’s website at www.ubm-development.com, submenu „investor relations”, sub-item „Bonds” and are available at https://www.ubm-development.com/de/investor-relations/anleihen/2750-ubm-anleihe-2019-2025/ and free of charge at the issuer’s registered office, Laaer-Berg-Straße 43, 1100 Vienna. In connection with the offer of the bonds of the UBM Bond 2019, only the information contained in the prospectus is binding, the information contained in this publication is non-binding. Investors should therefore familiarize themselves with the contents of the Prospectus, in particular with the indications of risks, taxes and conflicts of interest, before making their investment decision and should seek detailed personal advice, taking into account their personal asset and investment situation. Investors are therefore advised to read the Prospectus before making any investment decision in order to fully understand the potential risks and rewards of the decision to invest in the 2019 UBM Bonds. An investment in securities is subject to risks. Investors bear the credit risk of the Issuer. In the event of insolvency and/or liquidation of the Issuer, amounts payable on interest and/or principal may be lower; total loss of the capital invested is also possible in these cases.

UBM Development is a leading hotel developer in Europe. Its strategic focus is on the three asset classes Hotel, Residential and Office and on major European metropolitan areas as Vienna, Berlin, Munich or Prague. With over 145 years of experience, UBM focuses on its core competency, the development of real estate. The Group acts as a one-stop provider for the entire development value chain from initial planning all the way to marketing the property. UBM’s shares are listed in the Prime Market, the segment with the highest transparency requirements on the Vienna Stock Exchange.

For additional information contact:

Anna Vay, CEFA
Head of Investor Relations & Corporate Communications
UBM Development AG
Tel.: +43 (0)50 626-1863
Email: investor.relations@ubm-development.com