Deutsche Rohstoff: Placement of a bond with 5.25% coupon p.a.
 

• Subscription period: 11 November 2019 - 4 December 2019
• Bond volume up to EUR 100 million
• Use of proceeds: Expansion of successful oil and gas business in the US
• EBTIDA expected to increase by EUR 55 to 65 million in 2020
• Exchange offer for bond 2016/2021

Mannheim. Die Deutsche Rohstoff AG ("Deutsche Rohstoff") is planning a new corporate bond placement (WKN A2YN3Q, ISIN DE000A2YN3Q8) with a volume of up to EUR 100 million. It will be the third bond of Deutsche Rohstoff. The bond 2013/2018 was repaid on time, the bond 2016/2021 has a remaining term of approximately 20 months. Both bonds constantly traded above 100 percent of their nominal value.
 

Bond conditions and exchange offer
The term of the new bond 2019/2024 is 5 years - until December 2024. The annual interest rate is 5.25% and will be paid semi-annually. There will be a public offering in Germany from 11 November 2019 to 4 December 2019 and a private placement with institutional investors in Germany and several European countries.

In addition, the holders of the bond 2016/2021 (WKN A2AA05, ISIN DE000A2AA055) will receive an invitation to submit exchange offers from 11 November 2019 until 29 November 2019. Bondholders will be able to exchange each EUR 1,000 nominal value of the bond 2016/2021 for the same amount of the new bond 2019/2024. In addition, they will receive a cash payment of EUR 20 per EUR 1,000 nominal.
 

High oil reserves and profitable wells as basis for success
The proceeds from the issue will be used to further expand the company's successful oil and gas business in the US. Deutsche Rohstoff has been active in the US market for around ten years and currently produces from 44 horizontal wells which it operates itself and holds minority interests in several dozen wells. A further eleven wells are currently being completed and are expected to produce oil and gas from December 2019 onward.

The secure oil reserves of Deutsche Rohstoff, which have also been confirmed by a consulting firm, amount to 29 million barrels (BOE), resulting in a further sales potential of USD 987 million and an expected cash flow of USD 340 million. From 2014 to 2018, the Deutsche Rohstoff Group achieved cumulative earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 259 million. For the coming year, the Company expects a strong increase in revenues to EUR 75 to 85 million and EBITDA to EUR 55 to 65 million due to existing and recent drilling.
 

Global oil demand will continue to rise according to International Energy Agency
According to the International Energy Agency, the demand for oil will continue to grow in the coming decades. At present, almost 100 million barrels are consumed worldwide every day. According to estimates by the International Energy Agency, demand will continue to rise until 2040, although other energy sources and renewable energies will also become significantly more important. The reasons for the increase are the rising demand in the emerging markets and the growing world population.

The new bond 2019/2024 of Deutsche Rohstoff AG is expected to be traded at the Open Market (Quotation Board) of the Frankfurt Stock Exchange from 6 December 2019. The issuance will be accompanied by ICF BANK AG, based in Frankfurt. The share prospectus was approved today by BaFin and can be downloaded from the company's website (www.rohstoff.de/anleihe).
 

Mannheim, 7 November 2019
 

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold, copper, rare earths, tungsten and tin complete the portfolio. Further information can be found at www.rohstoff.de

Contact:

Deutsche Rohstoff AG
Dr. Thomas Gutschlag, CEO
Phone +49 621 490 817 0
[email protected]