As announced by the Rheinmetall group, together with its cooperation partner GM Defense, it has been awarded the contract for the first phase of the US Army’s Common Tactical Truck (CTT) program. The goal of the multi-stage program is to replace the US Army’s heavy tactical truck family with the production of up to 40,000 vehicles worth up to US$14 billion.
Rheinmetall issues convertible bonds to finance Expal purchase
Rheinmetall wants to issue convertible bonds to partially finance the takeover of the Spanish ammunition manufacturer Expal. In total, convertible bonds with a total volume of 1 billion euros are to be issued, the armaments manufacturer and automotive supplier announced. The remaining purchase price for Expal Systems SA is expected to be financed with cash and bank loans. In addition, the proceeds from the placement of the bonds are intended to ensure the Group’s strategic flexibility.
The Düsseldorf MDAX group announced the purchase of Expal for 1.2 billion euros in November.
Rheinmetall plans to issue two series of non-subordinated, unsecured convertible bonds, each with a total principal amount of EUR 500 million. The subscription right of the existing shareholders is excluded, the papers are to be offered accordingly only to institutional investors.
The convertible bonds will be offered with an annual coupon of between 1.625 and 2.125 percent (Series A) and an annual coupon of between 2.00 and 2.50 percent (Series B), payable semi-annually, the group said. The conversion premium is set at between 40 and 45 percent (Series A) and between 40 and 45 percent (Series B).
The Rheinmetall share temporarily lost 5.81 percent to 214.00 euros in XETRA trading.
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