annual financial statement 2011 - conwert Immobilien Invest SE

Annual Financial Statement 2011
1.6. Liabilities
Liabilities (with the exception of bonds) are recognised at their repayment amount.
On 7 November 2007 conwert Immobilien Invest SE issued a convertible bond with a price of
EUR 100,000 per certificate and a total value of EUR 196.4 million. The conversion premium
equalled 130% of the common share price on the date the convertible bond was issued.
The conversion right can be exercised at any time from 27 December 2007 to 3 November
2014. If the conversion right is not exercised, the bonds will be redeemed on 12 November
2014 at a price of EUR 111,490 per certificate. Interest is paid annually up to settlement at a
rate of 1.5% per year.
The difference between the issue price of the bond and the higher repayment amount will be
recognised over the term of the security.
Bond certificates that have not been converted or redeemed as of 12 November 2012 may be
put to the company for redemption. The issuer is entitled to redeem the bond prematurely at
the applicable redemption price on or after 24 November 2010, if the price of the common
shares to be delivered upon conversion equals at least 130% of the redemption amount on 20
of 30 successive stock exchange days.
Convertible bonds with a nominal value of TEUR 32,319 had been repurchased for
TEUR 45,400 by the end of the 2011 financial year. In 2011 convertible bonds with a nominal
value of TEUR 41,900 were withdrawn and therefore redeemed. The remaining convertible
bonds are reported on the balance sheet under financial assets (non-current).
In the first quarter of 2010 conwert Immobilien Invest SE issued another convertible bond
with a price of EUR 100,000 per certificate and a total value of EUR 135.0 million. This bond
has a six-year term ending on 1 February 2016. The bondholders have the right to put their
bond certificates prematurely four years after the date of issue at the nominal value plus
accrued interest. The convertible bond certificates were issued at 100% of the nominal value
of EUR 100,000. Interest is paid semi-annually at a rate of 5.25% per year. The conversion
price was adjusted from EUR 12.06 to EUR 11.60 to reflect the dividend payment.
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