Germany’s SGL Group has successfully placed with institutional investors an aggregate principal amount of €167 million of unsubordinated, unsecured convertible notes due in 2020, excluding shareholders’ pre-emptive rights.

SGL said the notes will have a maturity of 5 years and 16 days until Sept. 30, 2020 and will be issued and redeemed at 100% of their principal amount. The initial conversion price has been fixed at €18.6 million, representing a premium of 30% above the reference price of €14.3 million. The coupon has been set at 3.5% p.a., payable semi-annually in arrears on March 31 (long first coupon) and Sept. 30. 2018.

The carbon specialist will have the option to redeem all of the notes at their principal amount plus accrued interest on or after September 30, 2018, if the value of the underlying shares exceeds 130% of the convertible notes’ principal amount over a specified period.

In the main, the German group plans to use the proceeds to refinance all or part of the 3.5% convertible notes worth €190,000,000 issued in 2009 and due in 2016.

SGL is in the throes of an extensive corporate realignment scheme, at the heart of which is the group-wide cost savings program. Due to progress made so far, management recently forecast that group sales should remain roughly stable this year. Recurring group EBITDA and recurring group EBIT is forecast to significantly improve year-on-year.