BRIEF-Adler Group Says Agreement With Bondholder Group On Amendment Of Note Terms And Provision Of Secured Debt Financing

BY Reuters | CORPORATE | 11/25/22 01:58 PM EST

Nov 25 (Reuters) - Adler Group SA (ADPPF):

* EQS-ADHOC: ADLER GROUP S.A. (ADPPF): AGREEMENT WITH BONDHOLDER GROUP ON AMENDMENT OF NOTE TERMS AND PROVISION OF SECURED DEBT FINANCING

* BONDHOLDERS HOLD AROUND 45% OF BONDS ISSUED BY ADLER GROUP

* ADLER GROUP INTENDS TO ENTER INTO A CORRESPONDING AGREEMENT WITH A MAJORITY OF ITS BONDHOLDERS IN DUE COURSE

* ADLER GROUP INTENDS THAT AMENDMENT OF TERMS AND CONDITIONS BECOMES EFFECTIVE AT LATEST IN Q1 2023

* MATURITY DATE OF EUR 400,000,000 BOND DUE ON 26 JULY 2024 SHALL BE MOVED TO 31 JULY 2025

* ADLER GROUP (ADPPF)- ADLER GROUP HAS UNDERTAKEN, NOT TO DECLARE OR PAY ANY DIVIDEND OR MAKE ANY OTHER PAYMENT OR DISTRIBUTION TO ANY OF ITS SHAREHOLDERS

* ADLER GROUP HAS ENTERED INTO AN AGREEMENT WITH A CORE GROUP OF BONDHOLDERS TO RECEIVE SECURED DEBT FINANCING OF UP TO EUR 937.5 MILLION

* ADLER GROUP (ADPPF)- LOAN WILL ACCRUE PAYMENT-IN-KIND INTEREST AT A RATE OF 12.5%, HAS A TERM UNTIL 30 JUNE 2025, WILL BE ALLOCATED A CONTINGENT VALUE RIGHT INSTRUMENT

* SECURED CONTINGENT VALUE RIGHT ENTITLES HOLDER TO SUBSCRIBE 25% OF SHARES IN COMPANY AT A "ZERO-STRIKE" PRICE

* ADLER GROUP (ADPPF)- IN EVENT COMPANY HAS NOT DELIVERED SHARES WITHIN SIX YEARS AFTER UTILIZATION OF NEW MONEY FUNDS EQUITY INSTRUMENT WILL BE SETTLED IN CASH

* MATURITY OF LOAN GRANTED BY ADLER REAL ESTATE AG TO ADLER GROUP WILL BE EXTENDED TO 25 APRIL 2023

* INTEREST RATE WILL BE INCREASED TO 5.16% P.A., SUBJECT TO A CONFIRMING TRANSFER PRICING STUDY Source text for Eikon: Further company coverage:

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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