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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 ++++++++++ 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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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