ESPG AG Bondholders Approve Covenant Waiver and Potential Bond Increase

On March 21, 2024, ESPG AG, a leading real estate company specializing in science parks, announced that its bondholders have almost unanimously approved a precautionary covenant waiver and a potential increase in bond issuance. In a written voting procedure, more than 99.9% of the bondholders supported the measures, ensuring the required quorum for decision-making without a physical meeting was met.

As part of the resolution, the Total-LTV (Loan to Value) covenant, calculated as of the balance sheet date of December 31, 2023, has been temporarily suspended as a precautionary step, entrusting future decisions regarding the Total-LTV covenant as of December 31, 2024, to the bondholders' joint representative, Mr. Klaus Nieding. This move reflects the volatile market conditions currently facing the real estate sector. Additionally, the bondholders approved a potential increase in the bond volume by up to 20% of the existing total nominal amount at a minimum price of 95% of the nominal value, aiming to enhance the company's financial flexibility.

The decisions reached during the vote are slated for publication on ESPG's website immediately and will be announced in the Federal Gazette in the forthcoming days, as per the company's statement.