Eurocastle have priced their offer of new ordinary shares at a price of €37 per New Share. The number of New Shares to be issued is 16,216,216, raising gross proceeds of approximately €600 million.
Eurocastle has granted an over-allotment option to Deutsche Bank AG, London Branch on behalf of the underwriters to acquire 1,621,622 additional New Shares at the Offer Price. This over-allotment option may be exercised at any time up to and including 31 December 2006.
It is expected that the net proceeds of the Offer will be used to fund the acquisition of further investments to increase the size and diversification of the Company’s commercial real estate portfolio in Germany and to fund the repayment of amounts drawn down under the Company’s revolving credit facility with Deutsche Bank. Pending cash requirements for German real estate acquisitions, the Company will use that portion of the net proceeds temporarily for other investments.
The New Shares represent approximately 26.2 percent of the Company’s enlarged ordinary share capital immediately after admission of the New Shares to listing on Euronext Amsterdam N.V.’s Eurolist by Euronext.
Deutsche Bank AG, Goldman Sachs International, Lehman Brothers International (Europe) and Morgan Stanley & Co. International Limited are acting as joint lead managers and joint bookrunners in respect of the Offer.