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Original-Research: DEMIRE - from NuWays AG

Classification of NuWays AG to DEMIRE

Company Name: DEMIRE ISIN: DE000A0XFSF0

Reason for the research: Update Recommendation: Halten from: 28.03.2024 Target price: EUR 1.20 Target price on sight of: 12 Monaten Last rating change: Analyst: Philipp Sennewald

Mgmt confirms negotiations regarding bond restructuring Topic: DEMIRE released an ad-hoc, stating that the company has entered negotiations with a group of bondholders (Ad hoc Group), which is said to hold "well over 50%' of the outstanding nominal amount, regarding the restructuring of its unsecured corporate bond. Mind you, the corporate bond is due on 15 October 2024 and has an outstanding nominal amount of EUR 499m (EUR 600m at issue date). The company also gave indications as to which points a possible restructuring agreement could contain. In detail: (1) Extension of the term until 31 December 2027 at an increased coupon as well as additional compensation payments. While the company did not specify on possible conditions, we estimate total annual costs of 6.5% to be in line with the market, which would result in additional financial expenses of c. EUR 23m given the current nominal amount. (2) Mandatory repayments of the bond from the net sales proceeds of future asset disposals. Considering a net-secured LTV of 12.5%, assets held for sale to the tune of EUR 160m (as of 9M excl. LogPark), a 20% BV discount and the net cash inflow from the LogPark sale (eNuW: EUR 65-70m) this figure could amount to c. EUR 180m in 2024 alone. (3) Obligation to waive dividends or other distributions to shareholders during the extended term of the bond. (4) Additional collateralization of the bond in favor of the bondholders, likely via the company's portfolio of unencumbered assets. In addition, the company stated that one member of the Ad hoc Group intends to dispose a position to the tune of c. 20% of the outstanding nominal amount or c. EUR 100m. The company further stated that it considers submitting a bid to acquire the corresponding position. Considering this to be a highly distressed situation for the seller, DEMIRE would possibly be able to acquire the position below market levels (64% as of yesterday's close). Yet, as all the above is still subject to approval of the Ad hoc Group as well as an external economic feasibility analysis, we keep our forecast model unchanged for the time being. Given the prevailing uncertainty regarding the investment case, we reiterate HOLD with a EUR 1.20 PT.

You can download the research here: http://www.more-ir.de/d/29273.pdf For additional information visit our website www.nuways-ag.com/research.

Contact for questions Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research. 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