Here you find the releases of ADLER Real Estate AG relevant to the capital markets.

ADLER Real Estate AG: 2015/2020 corporate bond tap and early call of 2014/2019 corporate bond

DGAP-News: ADLER Real Estate AG / Key word(s): Bond

10.04.2017 / 10:44

The issuer is solely responsible for the content of this announcement.


ADLER Real Estate AG: 2015/2020 corporate bond tap and early call of 2014/2019 corporate bond

Berlin, 10 April 2017: ADLER Real Estate Aktiengesellschaft (ISIN DE0005008007) decided today to tap its 2015/2020 corporate bond (EUR 350 million; 4.75%) (ISIN XS1211417362, WKN A14J3Z) with target proceeds of EUR 100 million in a private placement significantly above par corresponding to a tighter yield of c. 2.6%. The resulting net proceeds will predominantly be used in connection with the acquisition of property portfolios, the ongoing refinancing of liabilities with higher interest rates and for general corporate purposes.

In this context, ADLER Real Estate today also decided to call its 2014/2019 corporate bond (EUR 130 million, 6%) (ISIN DE000A11QF02, WKN A11QF0) and to redeem it as of May 10, 2017 at 101.5 % of its nominal value plus interest accrued to this day (exclusive).

Arndt Krienen, CEO of ADLER Real Estate AG commented: "We intend to grow further in 2017. We already took a first step in the first quarter by acquiring around 700 residential units in the Greater Bremen region and we are currently reviewing other portfolios. By tapping the corporate bond, we are creating additional financial capabilities in order to acquire property portfolios at short notice and favourable conditions. This will both increase our flexibility in regards to acquisitions and improve our performance as a result of our ongoing refinancing."

"Moreover", adds Krienen, "we are now implementing what we have communicated for some time, namely repaying liabilities with higher interest rates. Our group company ACCENTRO took a similar step two weeks ago and called a bond with a volume of EUR 10 million with a 9.25 % coupon. With the proceeds from the sale of the conwert shares to Vonovia we have also repaid short-term loans amounting to EUR 200 million and higher yielding long-term liabilities of EUR 27 million."

Overall, the measures decided today will further reduce the company's interest expense, increase its FFO and will not affect the guided target of reaching 55% LTV by the end of 2017.

 

Contact for enquiries:

Dr. Rolf-Dieter Grass
Head of Corporate Communications
ADLER Real Estate AG
Tel: +49 (30) 2000 91 429
r.grass@adler-ag.com


10.04.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


show this