EQS-News

Corestate Capital Holding S.A.: Corestate successfully completes financial restructuring

EQS-News: Corestate Capital Holding S.A. / Key word(s): Capital Reorganisation/Financing Corestate Capital Holding S.A.: Corestate successfully completes financial restructuring 25.08.2023 / 17:53 CET/CEST The issuer is solely responsible for the content of this announcement. Corestate successfully completes financial restructuring

• Debt significantly reduced; future focus to be on asset management
• Financial liabilities from bonds reduced from a total of €535m to €143m
• Equity base significantly strengthened thanks to recapitalization
• Parallel issue of 132m new shares completed; new shareholder structure ensures stability and reflects investor confidence
• Operational restructuring successfully launched, including comprehensive cost-cutting program

Luxembourg, 25 August 2023 – Corestate Capital Holding S.A. ("Corestate") today successfully completed the balance sheet restructuring and recapitalization of the Group pursuant to resolutions by the Noteholders' meetings on 21 June 2023 and the Extraordinary General Meeting on 14 July 2023.

The Group has reduced the par value of the two bonds issued in 2017 and 2018 by approximately 78%, extending the maturity of each to 31 December 2026. In addition, existing bridging loans dated December 2022 and May 2023 have, together with accrued interest, been replaced by new super senior collateralized notes in the amount of €37m. These notes will likewise mature on 31 December 2026 ("New Super Senior Notes").

After reducing its financial liabilities from bonds from around €535m to around €143m, the Group now has significantly less debt and solid, long-term financing. It also possesses a much healthier gearing ratio in keeping with its balance sheet assets and potential earnings power.

At the same time, around 132m new shares have been issued, bringing the total number of shares outstanding to around 166.2m. Of these, 113.5m new shares were issued to bond investors who acquired the New Super Senior Notes. A portion of the remaining 18.5m new shares will lay the basis for a management incentive program under which management will in future hold a 10% stake in the Company. The new shares should be admitted to trading as soon as possible, depending primarily on the appointment of an auditor, which is still outstanding. Ultimately, the completion of this comprehensive recapitalization exercise gives Corestate a decidedly positive (pro forma) equity base in the low to mid three-digit million euro range. The new major shareholders have a long-term investment horizon. Convinced by the capital increase, they have given their full backing to the strategic realignment of the Group. Together, they provide stability and a broad base of support for the management during the current phase of the company's development.