DEMIRE Reaches Agreement with Bondholders on 2019/2024 Bond Restructuring

DEMIRE Deutsche Mittelstand Real Estate AG has announced an agreement with an additional group of bondholders regarding the restructuring of its 2019/2024 bond. This group has agreed to support the financial restructuring outlined in DEMIRE's June 5th announcement. The bond in question currently has a principal amount of EUR 499 million and is set to mature on October 15, 2024.

The agreement includes several amendments: a 2% fee payable if the principal amount is not reduced by EUR 50 million in 2026 and an increase in PIK interest from 1% to 3% in 2027 if the bond is not fully repaid by the end of 2026.

DEMIRE plans to seek an amendment to the lock-up agreement and will aim to convene a vote to implement these changes. The company is optimistic about gaining consent as these amendments improve the terms for bondholders. The combined support of both bondholder groups represents over 90% of the bond's outstanding nominal amount.