Germany-based venture builder Rocket Internet has invited holders of its convertible bonds issued in July 2015 to make offers to sell them back to the company for cash. The outstanding aggregate amount of the bonds is €289 million. Rocket Internet intends to cancel the purchased bonds.
The repurchase is set to be completed by July 18. If the buyback results in the outstanding bonds amount falling below 15 percent of the original €550 million (that is, €82.5 million), Rocket Internet could also exercise its clean-up call option. This means that it'd redeem all the remaining bonds at their nominal amount plus accrued interest.
In addition to that, Rocket Internet has announced that it has terminated its current buyback programme for convertible bonds issued last year.