ESPG AG: Bondholders approve changes to bond terms at first creditors' meeting

ESPG AG: Bondholders approve changes to bond terms at first creditors' meeting
 

Cologne, 7 August 2023. The bondholders of the European Science Park Group ("ESPG AG" or "Company") have approved comprehensive amendments to the terms and conditions of the Company's bearer bonds (ISIN: DE000A2NBY22 / WKN: A2NBY2) at the first creditors' meeting with a clear majority of more than 98% of all votes cast. In this way, the investors and the protection associations support the further development of the company and secure the bond financing of ESPG AG for the next three years.

Dr. Ralf Nöcker, CEO of ESPG AG: "We have received positive and constructive feedback from our investors already in advance, and we are pleased that the desired resolutions could already be passed at the first creditors' meeting. With the changes to the bond terms and conditions now resolved, which are closely aligned with the terms offered in the public exchange offer, we are offering attractive terms for our investors. At the same time, this successful refinancing gives us planning security for the further development of our company. In addition to the interest rate, the covenants were also adjusted together with our investors. This is in line with our financing policy. We would like to expressly thank our investors for the trust they have placed in us, their support, and their willingness to engage in dialog over the past weeks."

Markus Drews, Member of the Management Board of ESPG AG: "With the bond financing now secured for the next three years, we can continue on our operationally successful course. Our leasing successes in the recent past have further consolidated our positioning as a sought-after partner for research and development companies. We expect to be able to increase annual net rental income to around EUR 13.1 million p.a. by the end of this year. This means we remain clearly on course for growth."

The creditors' meeting decided in particular to increase the interest rate on the outstanding bearer bond to 9.5% p.a. as of October 1, 2023, and to extend the maturity date to October 1, 2026. Should ESPG AG wish to redeem the bearer bond before the new maturity date, this is to be done on September 30, 2024 (inclusive) at 103%, between October 1, 2024 (inclusive) and September 30, 2025 (inclusive) at 101 % and from October 1, 2025 (inclusive) at 100 % of the specified denomination. In addition, the definition of change of control was amended and the covenants were tightened in accordance with the request of one of the largest international institutional investors, which was fully endorsed by the Company's Management Board. The resolved tightening of the covenants increases the security for the bondholders in return for the maturity extension of the outstanding bearer bonds.

Finally, the regulations on announcements and notifications affecting the bearer bonds were amended. The creditors' meeting elected Klaus Nieding, attorney and vice president of DSW (Deutsche Schutzvereinigung für Wertpapierbesitz e.V.), as joint representative for all bondholders.

About ESPG
The European Science Park Group (ESPG) is a real estate company specialising in science parks. The company focuses on the development of science parks, predominantly characterised by tenants from future-oriented industries such as life sciences, green technologies or digital transformation, which benefit from the proximity to each other and the direct vicinity to universities, hospitals or research locations. ESPG’s portfolio already includes 16 science parks across Europe with a total area of 126,000 square metres and a balance sheet value of around 244 million euros. The sites are generally located outside metropolitan areas, in areas that are considered science clusters or have a high concentration of innovative companies.

Press contact:
Jan Hutterer
T +49 40 60 91 86 65
M +49 172 346 28 31
espg@kirchhoff.de