IR.on supports Karlsberg Brauerei’s issue of its third corporate bond with a volume of EUR 50 million

Karlsberg Brauerei GmbH, a family-run medium-sized company from the Saarland established in 1878, successfully placed its third corporate bond with a total volume of EUR 50 million in September. IR.on AG supported the transaction as investor relations and communications consultant.

Cologne/Homburg, 13 October 2020 – Looking back on eight years of capital market experience and two successful corporate bond issues, Karlsberg Brauerei GmbH had already established itself as a reliable capital market player and a good investment. An important aspect of investor communication was to make it clear that the company, with its strategic focus on the brand business, continued to perform well even in the difficult times of the COVID-19 pandemic and is well positioned for the future.. Besides strategic communications, IR.on AG’s consultants were also responsible for press relations, the corporate website, online marketing, the webcast with institutional investors and the dialog with the financial press, bond media and private investors.

Karlsberg Brauerei GmbH’s offer was divided into three parts, consisting of an exchange offer for the holders of the 2016/2021 bond including a multiple purchase option, a public offer in Luxembourg and Germany via the subscription functionality of Deutsche Börse, and a private placement in selected European countries.

The new 2020/2025 bond (ISIN: DE000A254UR5) with a term of five years met with high demand and was clearly oversubscribed. Consequently, the originally announced issue volume of EUR 40 million of the Karlsberg Bond III was increased by EUR 10 million to a total volume of EUR 50 million in the context of the private placement and the subscription option via Deutsche Börse was closed early. The annual coupon has been fixed at 4.25%, which is at the lower end of the range (4.25% to 4.75%) proposed before the start of subscription and also significantly below that of the 2016/2021 bond to be redeemed (5.25%). Listing on the Quotation Board (Open Market) of the Frankfurt Stock Exchange commenced on 23 September 2020.

“We are very happy about the great interest shown by investors, see our clear commitment to the capital market confirmed and express our thanks for the trust placed in us,” said Christian Weber, CEO of the Karlsberg Group. “We regard the high demand at a significantly lower interest rate than with our previous bond as confirmation of our strategy,” added Martin Adam, CFO of the Karlsberg Group.”

Karlsberg Brauerei GmbH will use the net proceeds from the new bond issue to refinance the 2016/2021 bond ahead of schedule and to make investments in technical equipment and ongoing digitalization.

The transaction was accompanied by Bankhaus Lampe KG and IKB Deutsche Industriebank AG as Joint Lead Managers, while Heuking Kühn Lüer Wojtek acted as legal counsel.