Q-Cells International Finance B.V., a wholly owned subsidiary of Q-Cells, issued a convertible bond of € 250 million that is guaranteed by Q-Cells. The convertible bond is secured with approx. 10.9 million shares. Unless converted, Q-Cells is obliged to repay 100 % of the par value.
| Volume | € 250 million |
| Denomination | € 100,000.00 |
| ISIN | DE000A1AGZ06 |
| WKN | A1AGZ0 |
| Stock exchange | Open Market (Freiverkehr) of the Frankfurt Stock Exchange from or prior to 26 June 2009 |
| Rank | Non-subordinated and (with the exception of the guarantee) unsecured |
| Settlement date | 26.05.2009 |
| Maturity | 26.05.2014 |
| Coupon | 5.75% per annum (Act/Act) payable semi-annually in arrear on 26 May and 26 November in each year, commencing on 26 November 2009 |
| Reference price | € 16.99 |
| Conversion price | € 22.94 (premium of 35%) |
| Terms & Conditions Convertible Bond 2014 | PDF download , 38 KB |
| Pricing of Convertible Bond 2014 | PDF download , 96 KB |
| Ad hoc announcement | PDF download , 100 KB |
Provided the Share Price during a period of 20 trading days within a 30 trading day period commencing on or after 26 May 2012 shall have been at least 250% per cent of the Conversion Price on such trading day, Q-Cells may redeem at any time all, but not some only, of the Bonds at their Redemption Price, together with accrued interest.
At the maturity date Q-Cells has the right to choose whether it will pay back the convertible bond in cash or in Q-Cells shares (possibly plus cash settlement).
The interest expense of the convertible bond is booked in the consolidated income statement under "Interest and similar expense". However, the amount entered there is higher than the pro rata interest payment actually due. Reporting regulations require the convertible bond to be regarded as a financial instrument with an equity component (right to subscription of shares) and an debt capital component (entitlement to interest and redemption). A market-based effective interest of presumably around 8% is applied to the established debt capital share in order to calculate the interest expense. However, the interest coupon of the convertible bond amounts to just 5.75%.