Deutsche Telekom AG ("Deutsche Telekom") announces that it has today successfully placed approximately EUR 2.3 billion of bonds, mandatorily convertible into common shares of Deutsche Telekom (the "Security"). The Security was priced at a 6.5 % coupon and a conversion premium of 24 % based on the reference share price of EUR 11.8. The Security was placed with a broad range of institutional investors. The transaction was more than three times oversubscribed. Deutsche Telekom has also granted an option to the managers (exercisable for 30 days after settlement) to resell to Deutsche Telekom Securities with a maximum amount of up to almost EUR 210 million (representing approximately 18 million shares) for stabilization purposes.
The transaction further strengthens Deutsche Telekom's balance sheet and does not increase net debt. The company stays fully committed to the successful execution of its announced deleveraging program by its 6+6 program.
This announcement is for information purposes only and is not an offer to sell, or the solicitation of an offer to buy, any securities.
The distribution of this press release and the offer and sale of Deutsche Telekom securities in certain jurisdictions may be restricted by law. Any persons reading this announcement should inform themselves of and observe any such restrictions.
THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. The Bonds have not been and will not be registered under the U.S. Securities Act of 1933. The Bonds are in bearer form and are therefore subject to U.S. tax law requirements. The Bonds may not be offered, sold or delivered within the United States or to U.S. persons.
This announcement is directed only at persons who (i) are outside the United Kingdom or (ii) are in the United Kingdom and either have professional experience in matters relating to investments or are high net worth companies, unincorporated associations etc for the purposes of Article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons. Stabilization/FSA