The Grounds Real Estate Development AG has announced an extension of the term of its existing 2021/2027 corporate bond. The company's management board adopted the corresponding resolution with the approval of the supervisory board. By exercising a contractually agreed option, the final maturity date of the notes is postponed by two years. Instead of the previous date of 18 February 2027, the bond's term now ends on 18 February 2029.
Legal basis and interest terms
The legal basis for the extension is the issuer's right set out in Section 3.2 of the bond terms and conditions. The Grounds Real Estate Development AG has validly issued this unilateral declaration to the bondholders in accordance with Section 3.2 in conjunction with Section 13 of the bond terms and conditions. The postponement of the maturity date to 2029 has therefore been formally executed under corporate law.
As a result of the maturity extension, clear interest provisions apply to the additional two-year period. In accordance with Section 2.1 of the bond terms and conditions, the notes will again bear interest at 6.0 per cent per annum on their outstanding nominal amount from 18 February 2027 inclusive up to and including 17 February 2029. The contractually fixed coupon for noteholders thus remains unchanged.
Maturity of interest claims and redemption
A significant feature concerns the payment timing of the interest yield. Any interest accruing from 18 February 2027 onwards will not be disbursed on an ongoing basis. Instead, it will be accumulated and become due for payment retrospectively on the rescheduled final maturity date in February 2029.
- —New final maturity date: 18 February 2029 instead of 18 February 2027
- —Interest rate: 6.0 per cent per annum from 18 February 2027 to 17 February 2029
- —Interest payment: Full retrospective payment on the postponed final maturity date
- —Redemption: At nominal value on 18 February 2029, provided no prior repurchase has taken place
The final redemption of the notes is scheduled to take place at nominal value on 18 February 2029. This redemption obligation applies without limitation, provided the securities have not already been redeemed or repurchased by the issuer prior to this cut-off date. With this step, the property company secures additional financial stability for the maturity structure of its liabilities.
