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 In addition, existing bridging loans dated December 2022 and May 2023 have, together with accrued interest, been replaced by new super senior collateralized notes in the amount of €37m.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.

On an operational level, the extensive restructuring of Corestate that was launched last year and the accompanying rigorous cost-cutting program have so far been implemented as planned. Going forward, the Group’s structure will consist of a holding company and operating subsidiaries. The latter will focus on asset management and will operate largely as independent entities.

Press and Investor Relations Contact

Dr. Kai Gregor Klinger
T: +49 69 3535630107 / M: +49 152 22755400
[email protected]
 

About Corestate Capital Holding S.A. (Corestate)

In its core business as an investment manager and co-investor within the Group, Corestate manages assets of approximately €13.2bn (June 2023). Through its independent subsidiaries, the company gives investors the opportunity to invest in major social trends such as urbanization, demographic change and sustainability, all of which will have a crucial and lasting impact on the environment in which we live and work. A consistent focus on sustainably successful asset classes is as central to Corestate’s corporate strategy as flanking the investments it manages with broad ESG expertise. Staffed by roughly 400 experts, the Group provides a comprehensive suite of services and advice to semi-institutional investors and high-net-worth private investors. Corestate is listed on the Frankfurt Stock Exchange with offices in cities such as Luxembourg, Frankfurt, Munich, Zurich, Paris and Madrid. For more information, please visit www.corestate-capital.com.

Forward-looking statements

This press release may contain certain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial situation, development or performance of our company to differ materially from the estimates given here. These factors include those described in the reports published on our website at corestate-capital.com. The Company assumes no obligation to update such forward-looking statements or to align them with future events or developments. Undue importance should not be attached to forward-looking statements that are deemed reasonable at the date of publication.