SGL Carbon Shares Fall on Plan to Issue Around EUR120 Million in Convertible Bonds

By Pierre Bertrand

SGL Carbon shares fell in Wednesday trading after the German company said it would issue approximately 120 million euros ($131 million) in convertible bonds due in 2028.

At 0739 GMT shares traded 8.5% lower at EUR7.75.

The bonds, which will only be offered to institutional investors outside the U.S. by way of an accelerated bookbuilding, would be convertible into up to 12.2 million no-par value ordinary shares, SGL Carbon said.

"The convertible bonds will have a maturity of years and will be issued and redeemed at 100% of their principal amount, with a coupon of between 5.50% and 6.00% p.a., payable semi-annually in arrear on June 28 and December 28, commencing on Dec. 28, 2023," the company said.

SGL Carbon shareholder SKion GmbH has indicated that it is interested in placing an order in the accelerated bookbuilding, SGL Carbon said.

The company said it plans to use the net proceeds from the bond issue to help refinance its 4.625% bonds due next year.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

June 21, 2023 04:00 ET (08:00 GMT)

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