1 September – LAWFUEL – The Law News Network – International legal pr…

1 September – LAWFUEL – The Law News Network – International legal practice Allen & Overy LLP advised Biofrontera AG on the issuance of a pre-IPO convertible bond in a nominal amount of €20 million. Biofrontera AG specialises in the development of pharmaceutical products in the field of dermatology.

The convertible bond was a private placement with institutional investors in particular in German-speaking countries. The bond is an important instrument in the context of the company’s bridge financing prior to its envisaged IPO. The securities are to be admitted to the regulated unofficial market (Freiverkehr) of the Frankfurt stock exchange.

The Frankfurt-based team included partners Dr Oliver Seiler and Dr Wolfgang Witz as well as senior associate Johanna Geuß.

Dr Oliver Seiler comments: “When structuring the terms of the convertible bond, we placed the main emphasis on the fact that the company is planning an IPO within the next nine months. The conversion rights of the bond holders therefore had to be structured essentially to reflect the intended IPO.”

Dr Wolfgang Witz adds: “In the run-up to the issue of the convertible bond, the company’s corporate structure had to be re-organised. Previous financing involving venture capital funds had left strong marks on the corporate structure. This fact substantially increased the complexity of the transaction.”

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