Swiss Prime Site AG launches up to CHF 300 million Convertible Bonds due 2015

Swiss Prime Site AG is issuing the Bonds to take advantage of the attractive financing opportunity currently available in the convertible bond markets and to benefit from the benign interest rate en¬vironment. The proceeds of the Bonds will be used to refinance the existing convertible bond due 3 February 2010, to increase financial flexibility and for general corporate purposes.
The Bonds are structured as 5-year traditional convertible bonds and are marketed to investors with a coupon range of 1.75% – 2.50%, payable annually in arrears, and a conversion premium range of 20% – 25% to the volume weighted average price of the Shares trading on the SIX Swiss Ex¬change from launch to pricing, which is expected to occur later today. The issue and the redemption price are set at 100%. The Issuer may call the Bonds at any time on or after the third anniversary after the payment date at par, together with accrued interest, if the closing price of the Shares is at least 130% of the conversion price on at least 20 out of 30 consecutive trading days or at any time after the pay-ment date at par, together with accrued interest if less than 15% in aggregate of the principal amount of the Bonds are outstanding. The Issuer has granted the Joint Bookrunners an increase option of up to CHF 40 million as well as an over-allotment option to purchase an additional amount of up to CHF 40 million of Bonds. The Bonds in the denomination of CHF 5,000 are convertible into Shares on or after 2 March 2010 and until 6 January 2015. The interest of the Bonds is subject to Swiss withholding tax.
The offering of the Bonds consists of a public offering in Switzerland and private placements of Bonds in other jurisdictions. The Bonds will be offered to investors outside the United States in reliance on Regulation S under the U.S. Securities Act of 1933, as amended, and in compliance with the laws and regulations applicable in every country where the offering takes place. Credit Suisse is acting as Sole Global Coordinator, and together with UBS Investment Bank as Joint Bookrunner for the Bonds.
The payment date of the Bonds is expected to be on or around 20 January 2010. Application for pro-visional admission to trading the Bonds will be made on the SIX Swiss Exchange as from 15 Janu¬ary 2010. The Shares are listed and traded according to the Standard for Real Estate Companies on the SIX Swiss Exchange.
The Issuer has agreed to a 90-day lock up period, subject to customary exceptions.