Q-Cells International Finance B.V., a wholly owned subsidiary of Q-Cells, issued a convertible bond on 28 February 2007 that is guaranteed by Q-Cells. The convertible bond is secured with approx. 7.37 million shares. Unless converted, Q-Cells is obliged to repay 100 % of the par value.
| Volume | € 492.5 million |
| Denomination | € 100,000.00 |
| ISIN | DE000A0LMY64 |
| WKN | A0LMY6 |
| Stock exchange | Luxembourg |
| Rank | Non-subordinated and (with the exception of the guarantee) unsecured |
| Issue date | 28.02.2007 |
| Term until | 28.02.2012 |
| Coupon | 1.375% |
| Reference price | € 47.71 |
| Conversion price | € 66.79 (premium of 40%) |
| Prospectus | PDF download , 718 KB |
| Pricing of Convertible Bonds 2012 | PDF download , 63 KB |
| Ad hoc announcement | PDF download , 70 KB |
| Exercise of the over-allotment option | PDF download , 97 KB |
Q-Cells may, at its option redeem the outstanding bonds if the Q-Cells share price on not less than 20 trading days during a period of 30 consecutive trading days is equal to or exceeds 130 per cent. of the then applicable conversion price as at each such trading day.
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 far 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 6.32 % 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 1.375 %.