Brait sells bonds worth $540 million to fund acquisitions


Investment company Brait SE, controlled by Christo Wiese, has sold $539 million of five-year convertible bonds in order to fund acquisitions. According to the company, it intends to use the proceeds for general purposes, with a primary focus on funding strategic acquisitions.

The company said in a statement:

"This is a pleasing outcome for Brait. The Board is satisfied with the pricing and terms for its inaugural issuance. This provides the business with new and alternative sources of capital."

The debt will mature on 18 September 2020. The 2020 bonds are expected to carry a coupon of 2.25 % - 2.75 %.

The company is diversifying its investments out of its traditional market of South Africa, following the sale of African retailer Pepkor Holding (R26.4 billion or $1.94 billion), and an agreement to buy UK women's clothing retailer New Look. Bank of America Merrill Lynch and Goldman Sachs Group are joint bookrunners of the bond sale, while Rand Merchant Bank and Standard Bank Group co-bookrunners on the deal.

Brait's primary listing is on the Euro MTF market of the Luxembourg Stock Exchange. Its secondary listing is on the JSE.

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