Adler Group S.A. procured binding commitments to refinance its 1L Facility

Adler Group S.A. procured binding commitments to refinance its 1L Facility
 

Luxembourg, 20 December 2024 – Adler Group S.A. (“Adler Group”) procured binding commitments in the amount of c. €1.2bn for the refinancing of the 1L Notes issued by ADLER Financing S.à r.l., an orphan special purpose vehicle not related to Adler Group (“Financing SPV”), and a corresponding amendment of the 1L Facility between, inter alia, Adler Group and the Financing SPV (“Refinancing”). The amended 1L Facility will accrue payment-in-kind (PIK) interest at a rate of 8.25% per annum plus a 1% OID with no call protection. The reduction of the PIK interest down from 12.5% reflects primarily an improved risk profile of Adler Group. Provided that the required consent by the Financing SPV and its noteholders will be obtained, the Refinancing is expected to be completed by the end of January 2025.

With the currently assumed refinancing volume of €1.2bn and the current business plan Adler Group will save approximately €47m of interest costs over the expected remaining lifetime of the 1L Facility. The maturity date as well as all other terms of the 1L Facility remain unchanged. Adler Group expects a continuous repayment of the 1L Facility from proceeds of both ongoing and future portfolio and asset disposals.

“The refinancing underscores the market's increased confidence in Adler Group. Besides continuously reducing the amount of debt following selected disposals of our assets, the significant reduction of the cost of debt is another important step to optimise our capital structure”, says Dr. Karl Reinitzhuber, member of the Board of Directors and CEO of Adler Group.

“In the past few months, we have had very intensive and constructive talks with a large number of investors in order to agree on a good deal for all stakeholders. We are grateful for the mutual trust and the interest that we have received from investors in this process. After the refinancing of the 1L Notes, we will continue to explore further ways to optimise our capital structure and particularly to lower the interest costs,” says Thorsten Arsan, member of the Board of Directors and CFO of Adler Group.

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