Siemens Energy said it has a placed 960 million euro ($949.63 million) mandatory convertible bond to help fund its takeover bid for wind turbine maker Siemens Gamesa.
It expects settlement of the notes to take place on or around Sept. 14, it said in a statement.
“With the planned full integration of Siemens Gamesa, we will become an even more attractive partner for our customers,” said Maria Ferraro, chief financial officer of Siemens Energy.
Siemens Energy in May announced a 4.05 billion euro deal to buy the remaining third in Siemens Gamesa it does not already own, hoping it can get a better handle on operational problems at the division.
At the time, Siemens Energy said it planned to finance up to 2.5 billion euros of the transaction with equity or equity-like instruments, which could include convertible bonds.
Outstanding notes will be converted into Siemens Energy shares at maturity on Sept. 14, 2025, and will have a maximum conversion premium of 17.5 per cent above the minimum conversion price and a coupon of 5.625 per cent per year, the company said.
