Milbank LLP has advised the ad hoc committee of holders of €250 million 2020/2023 notes on the refinancing of ACCENTRO Real Estate AG ("ACCENTRO"). The refinancing transaction comprises, inter alia, an extension of the maturity and the collateralization of the €250 million 2020/2023 notes issued by ACCENTRO and the €100 million 2021/2026 notes issued by ACCENTRO.
ACCENTRO is a residential property investor and Germany’s market leader in housing privatisations. Its real estate portfolio consisted of around 5,200 units as of 30 September 2022. In addition to Berlin, regional focal points include central German cities and conurbations, as well as the Rhine-Ruhr metro region. The shares of ACCENTRO are listed on the Prime Standard segment of the Frankfurt Stock Exchange (German securities code number WKN: A0KFKB, ISIN: DE000A0KFKB3).
The agreed refinancing provides for an extension of the maturity of the €250 million 2020/2023 notes and the €100 million 2021/2026 notes, an increase of the respective coupons, the collateralization of the €250 million 2020/2023 notes and the €100 million 2021/2026 notes and a comprehensive adjustment of the terms and conditions of the respective notes.
As a first step, noteholders representing approximately 56% of the €250 million 2020/2023 notes have entered into a lock-up agreement with ACCENTRO. The transaction contemplated by the lock-up agreement will be implemented by means of a voting of the holders of the €250 million 2020/2023 notes under the German Bond Act. The refinancing of the €100 million 2021/2026 notes will be implemented by means of an amendment agreement between ACCENTRO and the sole holder of the €100 million 2021/2026 notes.
The Milbank team that advised the ad hoc committee comprehensively on the restructuring, financing, corporate and tax aspects of the transaction was led by partner Mathias Eisen and included partners Yushan Ng, Karen McMaster (all Financial Restructuring) and Thomas Kleinheisterkamp (Tax), special counsel Nico Feuerstein (Capital Markets) and Sebastian Reiner-Pechtl (Corporate/M&A) and associates Robert Kastl, Philipp Engel, Alexander Theisen (all Financial Restructuring), Caroline Vorce, Sebastian Trompler (both Banking & Leveraged Finance), Elisabeth Wöhrle (Tax) and Nick Yousefi (Corporate/M&A).
