Bechtle secures €300m funding in convertible bonds

The reseller is set to fuel expansion in Germany and abroad with €300m of convertible bonds

German reseller, Bechtle, has raised €300m through convertible bonds, which they plan to use for expansion in Germany and abroad.

The management board at Bechtle excluded the pre-emptive rights of existing shareholders to subscribe to the convertible bonds.

Each €100,000 convertible bond will last seven years, paying two per cent interest and can convert at €54.99, a 30 per cent premium over the reference share price of €42.30.

Bechtle will also have the option to redeem all of the bonds early at their principal amount (plus accrued interest) if the price of the Bechtle share is equal to or exceeds 130 per cent of the then prevailing conversion price over a specific period or at any time if 20 per cent or less of the aggregate principal amount of the convertible bonds originally issued remains outstanding.

Holders will be entitled to cash in on 8 December 2028.

As part of the transaction, Bechtle will be subject to a 90-day lock-up after the closing date, subject to customary exemptions and waiver by the syndicate banks.

Bechtle recently reported a six per cent uptick in Q3, resulting in a business volume of €1.9bn.

EBT rose 6.4 per cent to €93.9m in the same quarter, pushing EBT margins from six per cent to 6.3 per cent. Employee count hit 14,840 by 30 September 2023, up 1,051 year-on-year.

The results also reported incoming order growing by 18.3 per cent.