Deutsche Rohstoff: Buyback Offering for Corporate Bond

Deutsche Rohstoff AG

Deutsche Rohstoff: Buyback Offering for Corporate Bond

Deutsche Rohstoff AG

Heidelberg. Deutsche Rohstoff AG is offering creditors of the issued corporate bond (WKN A1R07G; ISIN DE000A1R07G4) to purchase their bonds at a price of 105% of the face value. The offer period begins on 23 January 2015 and ends on 5 February 2015. The buy-back is limited to a maximum amount of EUR 20 million. The currently outstanding amount of the bond accounts for approximately EUR 57 million. Creditors will receive a respective notice from their banks within the next days. They will then have the opportunity declare their acceptance of the offer until 5 February.

Deutsche Rohstoff AG issued the bond in June 2013 to finance the drilling program of its subsidiary Tekton Energy in the United States. The bond is due in July 2018. In accordance with the terms and conditions of the bond, Deutsche Rohstoff has the right to terminate prematurely and repay the bond in July 2016 at a price of 103%, and beginning July 2017 at a price of 102%.

The original purpose of the bond issue has been omitted in the meantime, since Tekton Energy has sold its main assets for USD 200 million in May 2014. Deutsche Rohstoff still intents to reinvest in the oil- and gas-sector in the US. To this end, new acreage has been acquired within the last few weeks. It is planned to complete several wells in these areas within the coming months using proceeds of the bond. With the buy-back offer, Deutsche Rohstoff wants to give its creditors the opportunity to respond to the change in the initial situation and to redeem their bonds at an attractive price.

According to the regulations of Deutsche Börse AG (German Stock Exchange) trading of the corporate bond will be halted with the publication of this announcement until the end of the following trading day. This trading halt is a standard measure of the exchange.

Heidelberg, 21 January 2015