DEMIRE announces today the issue of a notice of redemption for its 2014/2019 corporate bond and the full repayment of expensive old liabilities

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Bond

21.09.2017 / 16:12
The issuer is solely responsible for the content of this announcement.


DEMIRE announces today the issue of a notice of redemption for its 2014/2019 corporate bond and the full repayment of expensive old liabilities

Langen, 21 September 2017 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) today announced the issue of a notice of redemption for its 2014/2019 corporate bond (ISIN: DE000A12T135). The funds used for the bond's repayment stem from the successful placement of the unrated, unsecured 2017/2022 corporate bond in the amount of EUR 270 million with a 2.875 percent interest rate placed at substantially better conditions with institutional investors on 12 July 2017. The repayment of the redeemed 2014/2019 corporate bond is expected to take place on 21 November 2017 at 104 percent according to the bond's terms and conditions. This redemption marks DEMIRE's full repayment of old liabilities, as planned, using the proceeds from the initial placement of the new 2017/2022 corporate bond.

As previously announced on 18 September, DEMIRE raised additional principal of EUR 130 million at 101.25 percent of par value (equivalent to a yield of c. 2.6 %) from its 2017/2022 corporate bond. Among others, proceeds are to be used to repay expensive old liabilities (A/B notes) in the fourth quarter whose average interest rate is 4.4 percent. With this repayment, DEMIRE will have achieved a significant reduction in its average financing costs under its DEMIRE 2.0 programme within only a few months. Average financing costs following the repayment are projected to drop from a recent 4.1 percent p.a. as of the 30 June 2017 reporting date to 3.0 percent p.a. on a pro forma basis. In addition, operating cash flow is set to rise starting in 2018 as a result of the completion of refinancing in the amount of roughly EUR 18 million p.a.

Contact

DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11
D-63225 Langen
Phone: +49 (0) 6103 - 372 49 - 0
Fax: +49 (0) 6103 - 372 49 - 11
ir@demire.ag
www.demire.ag

_______________________________________

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE - First in secondary locations

DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming areas bordering metropolitan areas across Germany. As of 30 June 2017, DEMIRE held real estate with a market value of roughly EUR 1 billion. As of the reporting date, annualised contractual rents of approximately EUR 72 million had been firmly agreed upon for an average term of 4.9 years.

DEMIRE aims to maintain its corporate organisation as lean as possible, although it still believes that economies of scale and portfolio optimisation are best achieved by having its own in-house asset, property and facility management. This safeguards the Company's business expertise and, equally important, allows the Company to maintain direct contact with the customer.

DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Deutsche Börse in Frankfurt.


 


21.09.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de



show this