DEMIRE Announces Negotiations for Bond Restructuring

DEMIRE Deutsche Mittelstand Real Estate AG has officially confirmed that it is engaging in negotiations with a major group of bondholders regarding the restructuring of its 2019/2024 unsecured corporate bond. The bond, which has a maturity date of 15 October 2024 and an outstanding nominal amount of EUR 499 million, has been the subject of market speculation leading to this acknowledgement. The negotiations aim to agree on an extension and adjustment of the bond's terms to align with the current market conditions.

The proposed Lock-up Agreement between DEMIRE and the bondholders, who collectively hold over 50% of the outstanding bond, seeks to extend the bond's maturity to 31 December 2027. It also includes provisions for an interest rate increase and various compensation payments to the bondholders. DEMIRE has committed to making mandatory prepayments from its planned net sales proceeds and refraining from dividend payments or other distributions during the extended term. Additional security measures in favor of the bondholders are also being discussed.

One of the bondholders in the negotiating group is planning to sell a position equivalent to approximately 20% of the outstanding bond amount, with DEMIRE considering making a purchase offer for this portion. The company has pledged to keep the capital market and public informed about the progress of these negotiations in compliance with legal requirements.