Disclosure of Inside Information Pursuant to Article 17 of Regulation (EU) No. 596/2014
Berlin, November 9, 2023 – Against the backdrop of the current market environment, ACCENTRO Real Estate AG (the “Company”) has decided to propose to the bondholders of its 2020/2023 bond (now 2020/2026, ISIN DE000A254YS5 – the “Bond”) a new plan for mandatory special redemptions and interest payments, which includes the postponement of mandatory special redemptions and the deferral of the interest payment otherwise due in February 2024.
The Bond, with an outstanding principal amount of 225 million EUR, includes, among other provisions, an obligation that, following an initial partial repayment of 25 million EUR in March 2023, a further partial repayment of the Bond totaling 40 million EUR must be made by December 31, 2023, at the latest. Under the current terms, the bond must be further repaid by a total of at least 130 million EUR by December 31, 2024, and by a total of at least 150 million EUR by February 28, 2025.
Given the persistently weak market environment and the market prices achievable under these conditions, the company has concluded that carrying out the previously agreed partial repayment would have required an inflow of liquidity through portfolio sales, which could currently only be executed at market prices that do not reflect what the company considers to be the bond’s higher intrinsic value.
Furthermore, the discussions following the expressions of interest from NongHyup Bank Co., Ltd. and Nox Capital Holding GmbH have not yet yielded sufficient results, meaning that additional funding cannot be expected in a timely manner.
Therefore, the company has decided to promptly invite bondholders to a vote without convening a meeting of bondholders, at which, among other things, a decision will be made regarding the postponement of the first mandatory special repayment by one year to December 31, 2024, as well as the postponement of the subsequent mandatory special repayments to June 30, June 2025 and December 31, 2025, respectively. In addition, the company intends to put to a vote a deferral of the interest payment—which would otherwise be due in February 2024—until December 31, 2024.
The company made the decision to invite a vote without a meeting in light of negotiations with a group of major bondholders and their advisors regarding a new restructuring of the mandatory special repayments and interest payments. Based on these negotiations, which have lasted several weeks, the Executive Board has now decided to propose the described new concept for mandatory special repayments and interest to all bondholders.
A corresponding investor presentation will be made available on the company’s website shortly.
Person issuing the announcement:
Thomas Eisenlohr, Head of Investor Relations
Tel.: +49 (0)30 887181272
eisenlohr@accentro.de
Berlin, November 9, 2023
The Executive Board: ACCENTRO Real Estate AG Kantstraße 44/45 D-10625 Berlin
ISIN: DE000A0KFKB3 / DE000A3H3D51 / DE000A254YS5
Stock Exchanges: Frankfurt Stock Exchange, Regulated Market (Prime Standard) / Luxembourg Stock Exchange
Investor Relations Contact:
Thomas Eisenlohr
ACCENTRO Real Estate AG
Kantstraße 44/45
10625 Berlin
Email: eisenlohr@accentro.de
Phone: +49 (0)30 88 71 81 272