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Original-Research: DEMIRE AG - from NuWays AG

Classification of NuWays AG to DEMIRE AG

Company Name: DEMIRE AG
ISIN: DE000A0XFSF0

Reason for the research: Update
Recommendation: Halten
Target price: EUR 1.20
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald

DEMIRE reaches agreement with bondholders

Yesterday, DEMIRE released an ad-hoc stating that the company has reached
an agreement with a group of bondholders (ad-hoc group), who represent the
majority of the outstanding principal amount of the bond (EUR 499m). It is
aimed to close the agreement as soon as possible. Here are the key
components of the agreement:

DEMIRE will perform a partial redemption of the bond at par to the tune of
EUR 49.9m.

The maturity of the bond will be extended until 31 December 2027 at an
increased 5% annual cash interest (prior: 1.875%) with an additional 1% PIK
interest starting on 1 January 2027.

Moreover, it is currently intended that shortly after the early redemption
of the EUR 49.9m, DEMIRE will launch a tender offer to all holders of the
bond to repurchase a maximum of EUR 209.3m of the remaining principal at a
maximum price of 76.25%. There are already backstop commitments provided by
members of the ad-hoc group for a large part of the maximum amount. DEMIRE
will pay all bondholders who participate in the backstop a fee of 5%. The
total discount at full utilization would hence amount to EUR 39.3m.

In order to finance this, DEMIRE's majority shareholder Apollo agreed to
grant a shareholder loan of maximum EUR 100m but at least EUR 68.3m, which will
be provided at arms' length terms. The remainder of the required funds will
be provided by DEMIRE's existing cash funds.

On top of this, Apollo has undertaken measures allowing DEMIRE to free up
additional liquidity, which is currently allocated to the development of
certain property companies (up to EUR 120m). This could include a transfer of
the respective entities into an entity controlled by Apollo.

The company also provided an asset disposal program comprising 17 assets
(incl. LogPark) which should generate total net proceeds of EUR 220m (8%
discount assumption) until 2026.

While it is most certainly good news that DEMIRE finally solved its
refinancing issue, the agreement represents
a great burden to the operating business of the company for the years to
come.

We hence reiterate to HOLD at an unchanged PT of EUR 1.20 and further keep
our estimates unchanged
until the closing of the agreement.

You can download the research here:
http://www.more-ir.de/d/29985.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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-------------------transmitted by EQS Group AG.-------------------


The issuer is solely responsible for the content of this research.
The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.

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Quelle: dpa-AFX