A bond is a classic tool companies can use to obtain long-term financing through capital markets.
Convertible bond holders have the right (but not the obligation) to convert bonds into equity at a pre-determined ratio before the bond’s maturity date. If the conversion option is not exercised before the maturity date, Klöckner & Co will redeem the bond at face value upon maturity.
Klöckner & Co issued convertible bonds in 2007, 2009 and 2010 in order to pursue its external growth strategy and to cover general corporate needs.
The €325 million convertible bond issued in 2007 was fully repaid in July 2012 when it matured.
If you have additional questions about Klöckner & Co convertible bonds, please contact us or send us a message!