DEMIRE Reaches Agreement on 2019/2024 Bond Restructuring

DEMIRE Deutsche Mittelstand Real Estate AG has entered a "Lock-up Agreement" with bondholders to extend and restructure its 2019/2024 bond. This aims to facilitate a smoother extension and restructuring process for its unsecured corporate bond maturing on 15 October 2024, with EUR 499 million outstanding.

The restructuring will include a partial redemption of EUR 49.9 million and amendments to bond conditions. These include extending maturity to 31 December 2027, a 5.00% cash interest rate, an additional 1.00% PIK interest from January 2027, and updated covenants for operational flexibility.

DEMIRE plans a tender offer to repurchase bonds at 76.25% of their principal amount, backed by commitments from bondholders and a shareholder loan from Apollo Global Management affiliates. The early redemption funding will be aided by the company’s assets and shareholder support.