Cromwell seeks to raise €200m through CB

Cromwell Property Group, the Australian property fund manager, sought to raise up to €200 million through a convertible bond issue on Tuesday to help fund the acquisition of a European property group.

The euro-denominated convertible has a five-year maturity with no investor put. It offers a 1.875% to 2.375% yield-to-maturity and converts into Cromwell shares at a 5% to 10% premium to the January 23 closing price of A$1.07, according to a term sheet seen by FinanceAsia.

Proceeds will go towards Cromwell's €145 million acquisition of Valad Europe, a European property investments manager with €5.3 billion in assets under management.

The base offering size totaled €150 million with an upsize option of an additional €50 million. The annual coupon rate ranged between 1.875% to 2.375% and is payable semi-annually, the term sheet said. Bank of America Merrill Lynch was the sole bank on the deal.

"[Cromwell] is interesting because [it has a] very high stock dividend [and] very low volatility," noted one equity-linked banker not on the deal.