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ADLER Real Estate AG successfully places a EUR 400 million 3-year bond to refinance existing debt
– Single tranche due April 2022 with a coupon of 1.5%
– New issue more than 4 times oversubscribed
– Proceeds will be used to refinance the outstanding 4.75% 2020 notes, callable at par in April 2019, as well as the refinancing of other debt
Berlin, 3 April 2019 – ADLER Real Estate AG (“ADLER“) today successfully placed EUR 400 million fixed rate senior unsecured notes (the “Notes“) with a 3-year maturity and a 1.5% fixed coupon. The Notes were placed with institutional investors across Europe with the new issue order book at pricing being more than 4 times oversubscribed.
The proceeds of the issue of the Notes will be used to refinance the outstanding EUR 300 million 4.75% 2020 notes which are callable at par from April 2019, as well as the refinancing of other debt.
ADLER has a corporate rating of BB (stable) with S&P. The Notes are expected to be rated BB+ with S&P, driven by the strong recovery rating of the bonds, and reflecting ADLER’s valuable asset base.
“The successful placement will allow us to reduce our interest payment by c. EUR 12 million over the next rolling 12 months adding to our FFO, and significantly improving our ICR, a key metric for our expected positive re-rating in 2019.”, comments Tomas de Vargas Machuca, Co-CEO of ADLER.
“Our WACD will improve and we are already able, on a see-through basis to meet our Guidance target of below 2.1 percent.”, comments Maximilian Rienecker, Co-CEO of ADLER.
The Notes have a denomination of EUR 100,000 each and will be listed at the regulated market of the Luxembourg Stock Exchange. J.P. Morgan acted as Sole Global Coordinator and J.P. Morgan and Morgan Stanley acted as Active Bookrunners on the transaction in addition to Unicredit as Passive Bookrunner.
Your contact for enquiries:
Head of Investor Relations
ADLER Real Estate AG
Tel: +49 (162) 424 6833