NuWays AG Recommends Buy for DEMIRE AG Following Successful Refinancing

NuWays AG has released an update on DEMIRE AG, maintaining a "Buy" recommendation with a target price of EUR 1.50. DEMIRE AG recently refinanced its corporate bond, extending its maturity to 2027 with a 5% interest rate. The company repaid €49.9 million at par and repurchased €190.8 million below par. This reduced the bond’s outstanding volume to €254 million. A shareholder loan from Apollo, amounting to €92.9 million, aided the refinancing process.

NuWays AG highlights that DEMIRE AG is incentivized to further reduce the bond by €50 million through 2026 to avoid penalty fees. Additionally, Moody’s upgraded DEMIRE’s bond rating to Caa2 with a stable outlook. Currently, DEMIRE's stock is undervalued, partly due to a significant NAV discount of 73%. Management plans to dispose €50 million in assets to boost liquidity by 2025.