DGAP-News: ADLER Real Estate AG successfully placed a EUR 800 million BB+ bond to institutional investors across Europe

ADLER Real Estate AG successfully placed a EUR 800 million BB+ bond to institutional investors across Europe

- Two tranches with 5 and 8 years maturity

- Attractive average coupon of 2.30 percent

- Issue nearly two times oversubscribed

- Refinancing of bridge financing and Tender Offer to buy back up to EUR 200 million of the EUR 500 million 2015/2020 4.75 percent coupon bond

Berlin, 20 April 2018 - ADER Real Estate AG today successfully placed a EUR 800 million BB+ senior unsecured bond to institutional investors across Europe. Following the closing of the bookbuilding, the final terms of the senior unsecured notes were fixed. The notes will be issued in two tranches. The first tranche with a volume of EUR 500 million matures in April 2023, the second tranche with a volume of EUR 300 million matures in April 2026. The average coupon for the total issue amounts to 2.30 percent. The issue was nearly two times oversubscribed.

The net proceeds from the notes issuance will be used primarily for the purpose of refinancing the bridge loan structured in connection with the successful acquisition of Brack Capital Properties N.V. Moreover, on April 19, 2018 ADLER initiated a tender offer to repurchase of up to EUR 200 million principal amount of the existing EUR 500 million 2015/2020 notes. The offer ends on April 27, 2018. The remaining proceeds will be used for general corporate purposes.

"With today's successful placement we have reached several goals", said Tomas de Vargas Machuca, Co-CEO of ADLER Real Estate AG. "We have refinanced the bridge facility at favorable conditions with longer term maturities, and significantly reduced our refinance risk for 2020 by launching a tender offer for up to EUR 200 million for the EUR 500 million 2015/2020 4.75 percent coupon bond, thus de-risking our present and future short-term debt. These two elements together with the announced sale of the majority of our non-core assets at a premium are expected to significantly improve our risk profile in line with our target to reach investment grade as soon as possible."

Maximilian Rienecker, Co-CEO of ADLER Real Estate AG, added: "The success of this issuance is a testament to the hard work ADLER has put in streamlining the business. There are many positive effects from this transaction that will be seen in terms of key metrics such as the company's weighted average maturity, FFO, WACD and ICR, all part of our ongoing strategy."

J.P. Morgan Securities plc acted as Sole Global Coordinator, and Deutsche Bank AG London Branch, Goldman Sachs International, J.P. Morgan Securities plc and Morgan Stanley & Co. International plc acted as Joint Bookrunners for the accelerated bookbuilding.

For enquiries, please contact:
Dr Rolf-Dieter Grass
Head of Corporate Communication
ADLER Real Estate AG
Telephone: +49 (30) 2000 914 29
r.grass@adler-ag.com