UPDATE 2: 10:38 a.m. ET 8/12/2022: Accentro’s majority shareholder is working with Kirkland & Ellis as the German real estate company enters restructuring discussions to address its bond maturity in February 2023, sources told Reorg.
Accentro has a €250 million unsecured bond due in February 2023 and a €100 million unsecured bond due 2026. The €250 million bond is quoted at 65/70.
As of Dec. 31, 2021, Accentro’s majority shareholder (83.1%) is Brookline Real Estate, which is advised by Vestigo, which is led by the investor Natig Ganiyev. He
acquired an 82% stake in Accentro in 2017 from Adler Real Estate, which currently owns 4.8% in Accentro. The remaining 12.1% is free float.
According to Adler Real Estate’s first-quarter report, there was still a purchase price receivable including interest of €59.3 million outstanding. In its
full-year 2021 report, Adler Real Estate said Accentro has reconciled the outstanding receivable with Adler and asked to draft a release letter for the purchase price collateral to be issued in conjunction with the purchase price payment.
UPDATE 1: Accentro Appoints Latham as Legal Counsel for Debt Talks With Lenders
UPDATE 1: 11:22 a.m. ET 8/9/2022: The German real estate company Accentro has appointed Latham for talks with lenders to find a solution for its upcoming maturities, sources told Reorg.
Original Story 4:58 a.m. UTC on Aug. 2, 2022
Accentro Working With Perella, White & Case in Debt Talks with Bondholders to Address 2023 Maturity
German real estate company Accentro is working with Perella Weinberg in negotiations with lenders to address the company’s bond maturity in 2023, sources told Reorg. The company has also been working with White & Case as legal counsel, sources added.
Accentro has a €250 million unsecured bond due in February 2023 and a €100 million unsecured bond due 2026.
A group of bondholders is working with Houlihan Lokey and Milbank as
reported. Sources said about 60% to 70% of the bonds are concentrated among a small number of holders, with Fidelity owning about €20 million, according to
Bloomberg and at least one hedge fund among the holders.
Sources said the company could launch a tender offer for a part of the €250 million bonds due 2023 using some of its cash position and ask bondholders to agree to an amend-and-extend solution for the outstanding amount. Cash and cash equivalents stood at €158.9 million at the end of March.
The group could then sell assets to pay down the remaining part of the bond or partially repay the bond and refinance the rest, sources suggested.
As of March 31, Accentro’s book value of properties stood at €618.2 million, including €331.1 million investment properties (for rental purposes) and €287.1 million inventory properties (for sale). An evolution chart of the group’s book value of properties is shown below:
Accentro’s capital structure is below:
Accentro Real Estate AG
|
03/31/2022 |
|
EBITDA Multiple |
(EUR in Millions) |
Amount |
Price |
Mkt. Val. |
Maturity |
Rate |
Yield |
Book |
Market |
|
Secured Bank Loans 1 |
250.6 |
|
250.6 |
|
|
|
|
Total Secured Bank Loans |
250.6 |
|
250.6 |
|
5.2x |
5.2x |
€250M Unsecured Bonds due 2023 2 |
250.0 |
68.8 |
172.1 |
Feb-13-2023 |
3.625% |
89.558% |
|
€100M Unsecured Bonds due 2026 3 |
100.0 |
60.0 |
60.0 |
Mar-23-2026 |
4.125% |
20.750% |
|
Total Unsecured Bonds |
350.0 |
|
232.1 |
|
12.5x |
10.0x |
Lease Liabilities 4 |
5.6 |
|
5.6 |
|
|
|
|
Total Lease Liabilities |
5.6 |
|
5.6 |
|
12.6x |
10.1x |
Total Debt |
606.2 |
|
488.3 |
|
12.6x |
10.1x |
Less: Cash and Equivalents |
(158.9) |
|
(158.9) |
|
Net Debt |
447.2 |
|
329.4 |
|
9.3x |
6.8x |
Operating Metrics |
LTM Revenue |
198.8 |
|
LTM Reported EBITDA |
48.2 |
|
|
Liquidity |
Plus: Cash and Equivalents |
158.9 |
|
Total Liquidity |
158.9 |
|
Credit Metrics |
Gross Leverage |
12.6x |
|
Net Leverage |
9.3x |
|
Notes:
The capital structure is on a post IFRS 16 basis. EBITDA is calculated as EBIT as reported plus D&A. Market data as of July 22, 2022.
1. Calculated as financial liabilities less lease liabilities, as latest figure is not disclosed in Q1'22 report. Secured by the real estate portfolio for whose financing they were taken out, and by the rent and sales receivables associable with those properties.
2. Issued in February 2020.
3. Placed on March 23, 2021. Fully subscribed by a pension fund.
4. Amount as of Dec. 31, 2021, as latest figure is not disclosed in Q1'22 report. |
Accentro declined to comment.
--Aurelia Seidlhofer