FC Schalke 04 is increasing the public offering for its new corporate bond to up to €75 million.
There is considerable interest in FC Schalke 04’s new corporate bond: Due to very strong demand, the club is increasing the public offering of the 2025/2030 bond (ISIN: DE000A460AT6 / WKN: A460AT) from up to €50 million to up to €75 million.
The corresponding prospectus supplement for the increase in the issue volume of the 2025/2030 bond was approved by the Luxembourg Financial Market Supervisory Authority Commission de Surveillance du Secteur Financier (CSSF) on Tuesday (November 11), and the German Federal Financial Supervisory Authority (BaFin) was notified.
“We are delighted with the high level of interest shown in recent days. Our initial goal was to fully redeem the 2021/2026 bond, and we also focused on at least partially refinancing the 2022/2027 bond,” explains Christina Rühl-Hamers, member of the Executive Board and responsible for finance. “In view of the volume subscribed so far, it is realistic to expect to exceed the volume of up to €50 million originally set out in the securities prospectus. The fact that we are likely to exceed both targets offers Schalke 04 a strong strategic option.”
The increase to up to €75 million in the public offering will enable the club, depending on the final subscription volume, to offer a higher allocation and conversion ratio for all interested investors. The response from professional investors has also significantly exceeded expectations. According to the prospectus, bonds outside the prospectus may be offered to so-called qualified investors – or institutional investors for short. The private placement is not part of the public offering and may further increase the issue volume beyond the public offering of €75 million. The strong interest among professional investors underscores the high level of trust and credibility that Schalke 04 enjoys on its path to financial stabilization.
“As a result, this potential offers the opportunity to reorganize the financing structure in key areas ”in order to significantly increase our freedom of action and pursue our overall course even more consistently,” as Rühl-Hamers explains.
The use of the funds has already been determined and is set out in the securities prospectus. The funds from the 2025/2030 bond will be used to: refinance the 2021/2026 bond with a remaining volume of €15.9 million, Refinancing the 2022/2027 bond with a remaining volume of €34.1 million Repaying other, in particular senior secured financial liabilities – depending on the final volume achieved after the end of the subscription phase. “One message is very important to us: we will, of course, continue to pursue our consistent policy of reducing the financial burden of liabilities in the long term. The new bond will not increase our debt in the long term. It is exclusively for the repayment of existing liabilities. This will give us financial planning security and new freedom of action in our decisions over a longer period of time,” explains Rühl-Hamers. The costs, such as interest and guarantee fees, are roughly the same for the existing financing, the new corporate bond, and overall. The 2025/2030 bond can be subscribed until November 18, 2025, via the club’s website at s04.de/anleihe2025. The bond has a fixed annual interest rate of 6.50%, a term until November 26, 2030, and a Bundesliga bonus as a one-time bonus payment of 1.50% if the Royal Blues are promoted up to and including the 2029/2030 season. The issue is being carried out under the motto “Shaping the future – for Schalke’s opportunities.”
Nominal value of €1,000.00 each
The 2025/2030 bond is being issued at a nominal value of €1,000.00 each. Holders of the 2021/2026 and 2022/2027 bonds will receive a voluntary exchange offer to benefit from the higher interest rate of the new bond. FC Schalke 04 points out that, in the event of an exchange, the information may be provided by the depositary financial institution by post and/or electronically (e-mail or digital mailboxes). If this has not yet been done, it is advisable to actively contact the relevant institution. The securities prospectus for the new 2025/2030 corporate bond and the approved prospectus supplement are available for download at s04.de/anleihe2025.
