Aggregate Holdings garners consents to extend notes, defer coupons

Chicago, May 25 – Aggregate Holdings SA announced that noteholders representing a majority of two series of its bonds agreed to amendments on the notes, according to an announcement.

The company was conducting a consent solicitation for its €600 million 6 7/8% notes due 2025 (ISIN: DE000A28ZT71) and its €250 million 5½% notes due 2024 (ISIN: DE000A3KPTS1).

As a result of the consent solicitation, the notes will now mature in November 2025.

Additionally, coupons will be deferred until maturity with each coupon increased by 2¾% per year.

The loan-to-value covenant test of 65% will be removed from the documentation.

The interest coverage covenant will also be removed due to deferral of the coupon.

Further, the amendment will change the definition of material subsidiary to be amended to 20% of total assets from 10% of total assets.

The solicitation started on May 4 with irrevocable support from 55% of the 2025 noteholders already received..

The rationale for the proposed amendments is that the current real estate environment has resulted in: i) a reduction in appraised values for Aggregate’s investment properties and investment properties under construction, and ii) market conditions that are not conducive to conducting further asset sales or refinancings on terms which the company views as attractive.

By giving the company more time and deferring interest, noteholders will provide stability to the business and allow it to continue constructions of its assets to be able to realize the value of completed developments when the market normalizes.

Aggregate has been selling assets to pay down debt and de-lever the company, a process started in 2022.

Aggregate will focus the uses of future free cash proceeds on repaying debt, rather than on material acquisitions.

Aggregate Holdings SA is a predominantly German-focused real estate investment company, with significant presence also in Portugal.

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