Due to the high demand, the drug wholesaler and pharmacy operator made use of its right to increase the initial amount by 25 million.
The drug wholesaler and pharmacy operator Zur Rose issued a convertible loan of 175 million francs running until March 31, 2025. Due to the high demand, the Frauenfeld-based company made use of its right to increase by 25 million the originally planned amount of 150 million.
This increase was not surprising. In the afternoon, brokers told AWP that investors were very interested.
The proceeds of the loan will be used to finance growth initiatives in Europe to broaden the customer base. Other investments are planned in the online pharmacy. Zur Rose will also be able to adapt to the significant increase in demand since the start of the coronavirus crisis.
The loan coupon should be between 2.75% and 3.25% per year. The price for conversion into shares will be 142.3944 francs. This represents a premium of 20% over the weighted average price of the share volumes between the start of the issue and the closing price.
Zur Rose reserves the right to denounce the prepayment loan at any time at par plus any interest if the share price (volume-weighted) exceeds 130% of the conversion price for at least 20 working days out of 30 consecutive working days. The early redemption may also take place at par plus accrued interest or if less than 15% of the nominal amount remains in circulation.
The bond is due to be released on March 31 and a request for listing on SIX will be filed. The issuer and Zur Rose have committed to a period of 90 days from the date of release.
On the stock market, the announcement of the operation weighed on the action, which closed down 11.3% to 120.60 francs after falling by up to 14% to 117 francs.