Press Release

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HEUKING advises Karlsberg on issuing a Nordic bond

A team led by Dr. Thorsten Kuthe, Partner at HEUKING’s Cologne office, legally advised Karlsberg Brauerei GmbH on issuing a corporate bond in the form of a Nordic bond.

The new 2024/2029 bond issue garnered strong interest from both private and institutional investors, leading to multiple oversubscriptions. Given the robust demand in both Germany and internationally, the issuance volume of the private placement was raised by EUR 5 million, from the initially planned EUR 50 million to a total of EUR 55 million. The annual interest rate was fixed at 6.00% p.a., at the lower end of the anticipated rate range. Due to the high demand, the issue was closed prematurely on April 19.

The offering from Karlsberg Brauerei GmbH was structured into three components: an exchange offer targeting holders of the 2020/2025 bond, complete with a multiple-purchase option; a public offer facilitated through the subscription functionality of Deutsche Börse; and a private placement. About 46% of the existing 2020/2025 bonds were tendered for exchange. Despite the offer being significantly oversubscribed, nearly half of the bonds submitted for exchange were successfully allocated.

As one of Germany’s largest family-operated brewery groups, Karlsberg Brauerei GmbH adopts a consumer-centric approach, focusing on the development, production, and distribution of a diverse portfolio of alcoholic and non-alcoholic beverages. Additionally, the company engages in contract manufacturing on a selective basis, primarily serving international clients.

The transaction was supported by Pareto Securities AS, Frankfurt Branch as lead manager, HEUKING as legal advisor, and IR.on AG as communications advisor.

Counsel toKarlsberg Brauerei GmbH

HEUKING:

Dr. Thorsten Kuthe (Lead),

Magdalena Köster,

Anna Richter, LL.M.,

Stefan Westerheide, LL.M. oec,all Capital Markets, all Cologne