WIESBADEN (dpa-AFX) - SGL Carbon is raising fresh financial resources through a convertible bond worth around €120 million. Among other things, the carbon fiber specialist intends to use these proceeds to refinance an existing bond that matures in 2024. In addition, the group's gross debt is to be reduced, the company announced in Wiesbaden on Wednesday. SGL shares fell sharply in the morning in anticipation of the news

The new bonds are to be convertible into up to 12.2 million no-par shares. With approximately 122.3 million shares currently outstanding, this corresponds to a capital increase of approximately 10 percent. The initial conversion price is to be set at a premium of 20 to 25 percent to the volume-weighted average price of SGL shares between the start of the placement and the pricing of the offering. The term of the bond has been specified as five years - until 2028 - and the interest rate is expected to be 5.5 to 6 percent.

The convertible bond will be offered exclusively to institutional investors outside the United States through an accelerated process, the statement added. Major shareholder Skion, the investment company of entrepreneur Susanne Klatten, has already expressed interest in placing an order. It currently holds 28.5 percent of SGL./tav/stk