A Heuking team led by partners Dr. Thorsten Kuthe and Ralf M. Schnaittacher advised Karlsberg Brauerei GmbH on placing its new 2020/2025 bond, which met with high demand and was significantly oversubscribed. The issue volume of Karlsberg Security III, including an increase option, was EUR 50 million. Due to high demand, the subscription window was closed early.
The bond’s annual interest rate is 4.25 percent, which is at the lower end of the range announced prior to the subscription start (4.25 percent to 4.75 percent). Karlsberg Brauerei’s offer was divided into three parts, consisting of an exchange offer for the holders of the 2016/2021 bond including an option to purchase, a public offer via Deutsche Börse’s subscription functionality, and a private placement.
The net proceeds of the new bond issue after the exchange will be used to refinance the outstanding amounts of the 2016/2021 bond. Karlsberg intends to invest the remaining proceeds of the issue in technical equipment and continued digitalization.
Karlsberg Brauerei GmbH was founded in 1878. In the classic beer segment, Karlsberg offers the Karlsberg Urpils and Natur Radler, Karlsberg Natur Weizen, and Karlsberg Helles varieties. The Homburg-based brewery has also gained a reputation as market innovator with its Karlsberg MiXery line.
The team led by Kuthe and Schnaittacher had earlier advised Karlsberg Brauerei on issuing corporate bonds in 2012 and 2016.
Counsel to Karlsberg Brauerei GmbH
Heuking Kühn Lüer Wojtek:
Dr. Thorsten Kuthe (Lead, Capital Markets),
Ralf M. Schnaittacher (Lead, Corporate),
Stefan Westerheide, LL.M. oec (Corporate),
Sascha Beck (both Capital Markets), all Cologne