Corporate | 28 June 2016 13:00
Deutsche Rohstoff AG / Key word(s): Issue of Debt
28.06.2016 13:00
Dissemination of a Corporate News, transmitted by DGAP - a service of EQS
Group AG.
The issuer / publisher is solely responsible for the content of this announcement.
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Deutsche Rohstoff: Placement of a new bond with an annual coupon of 5.625%
Attractive swap offer for existing bond at 104 % of nominal value
Heidelberg. Deutsche Rohstoff AG announced today that it will issue a new
corporate bond (WKN A2AA05, ISIN DE000A2AA055) from 30 June to 18 July 2016
with a volume of up to EUR 75 million. The bond prospectus was approved
today by the Federal Financial Supervisory Authority (BaFin) and is now
available for download on the company's website (www.rohstoff.de/
anleihe-2016). ICF Bank AG in Frankfurt will act as sole bookrunner of the
transaction.
The new 2016/2021 bond has a five-year term, maturing in July 2021. The
interest rate of 5.625 % per year will be paid semi-annually. The 2016/2021
bond will be made available to investors through a public offer in Germany
as well as private placement for institutional investors in Germany and
several other European countries. Owners of the 2013/2018 bond (WKN A1R07G;
ISIN DE000A1R07G4) will receive a swap offer invitation over the next days.
They will be offered the possibility to swap every EUR 1,000 nominal value
of the 2013/2018 bond for the same amount of the new 2016/2021 bond. In
addition, they will receive a cash payment of EUR 40 for every EUR 1,000
nominal value, resulting in an effective exchange rate of 104 %.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: "After the success
of our first bond, we are happy to make another interesting offer to our
investors. The new bond will yield high and stable interest rates to our
creditors. We are convinced the new bond will be as well received as our
old bond."
Beginning on 11 July 2016 the company has the option to terminate the old
2013/2018 bond for the first time. It traded at very stable levels during
the last three years averaging about 106 % of its nominal value. In
September 2014 and February 2015 Deutsche Rohstoff already bought back
2013/2018 bonds at a nominal value of approximately EUR 11.2 million
through a voluntary buyback program.
Deutsche Rohstoff plans to use the cash and cash equivalents available
(potentially after repayment of the bond 2013/2018), which amounted to EUR
83 million as of December 31, 2015, to finance mainly oil and gas wells in
the Wattenberg field near Denver, Colorado, USA. As from September 2015,
oil and gas production occurs from five horizontal wells, which paid back
approximately 35 % of their initial capital expenditure in the first three
months of production. Since the end of March 2016 a new drilling campaign
is under way consisting of 25 planned wells. All of these are anticipated
to enter oil and gas production between August and October 2016.
Given their geological risk, the currently drilled wells are not
categorized as exploration wells, but as development wells in the
established Wattenberg oil and gas field. Due to the high level of
development activity and initial drilled wells, one of the most renowned US
reserve evaluation companies was able to confirm proved reserves of 10
million barrel of oil equivalent and probable reserves totaling 12.5
million barrel of oil equivalent. The expected total revenue amounts to USD
325 million for the proved reserves and USD 410 million for the probable
reserves, based on the oil and gas forward price curve as of 30 April 2016.
Net earnings (revenue minus shares of partners, royalties, development and
operational costs as well as severance tax) ought to add up to USD 127
million (proved reserves) respectively USD 155 million (probable reserves).
The net present value of the reserves (discount factor 10 %) is USD 55
million for proved reserves and USD 62 million for probable reserves.
At present, Deutsche Rohstoff benefits from sharply reduced development
costs per well. They are currently estimated to be in the range of USD 2.5
million. In 2014, completion cost of a comparable well amounted to USD 4
million. Moreover, Deutsche Rohstoff has the opportunity to claim its tax
credits, received in 2014, for a portion of the development costs of the
current wells. These amount to approximately 23% of the total drilling
costs.
With the 2013/2018 bond Deutsche Rohstoff was able to successfully fund a
drilling program of about 20 horizontal wells in 2013 and 2014. In May
2014, the company sold the main assets in the USA for a cash payment of USD
200 million and additional acreage valued at USD 30 million. Deutsche
Rohstoff's current activities are only few miles away from the acreage sold
in 2014.
According to regulations of the German Stock Exchange, trading of the bond
2013/2018 will be suspended from the time of issuance of this release until
the end of the following trading day. This is a standard measure.
Heidelberg, 28 June 2016
Deutsche Rohstoff identifies, develops and divests attractive resource
projects in North America, Australia and Europe. The focus is on the
development of oil and gas opportunities within the United States. Metals,
such as gold, copper, rare earth elements, tungsten and tin complete our
portfolio. For more information please visit www.rohstoff.de.
Contact:
Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 6221 871 000
info@rohstoff.de
28.06.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap.de
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Language: English
Company: Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24
69117 Heidelberg
Germany
Phone: 06221-87100-11
Fax: 06221-87100-22
E-mail: gutschlag@rohstoff.de
Internet: www.rohstoff.de
ISIN: DE000A0XYG76, DE000A1R07G4,
WKN: A0XYG7, A1R07G
Indices: Entry Standard (Performance TOP 30)
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart;
Open Market (Entry Standard) in Frankfurt
End of Announcement DGAP News-Service
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