Grounds Real Estate asks convertible holders to vote on extension, modification

Chicago, Nov. 29 – Grounds Real Estate Development AG is asking holders of its €16.8 million of 6% convertible bonds due 2024 (ISIN: DE000A3H3FH2) to vote on an extension on modified terms, according to a notice on Tuesday.

The company is asking holders to convert their convertible bond into a corporate bond, extend the maturity by three years and increase interest to 8%.

Under the modified terms, Grounds would have the potential option of another two-year extension for a bump in the interest rate to 10%.

The new notes would be callable at par before Feb. 18, 2027, the new maturity date.

The change of control would not include H.I.G. Capital acquiring an equity interest.

Covenants would include a limit on distributions and the maintenance of a debt-to-equity ratio.

A vote without a meeting is scheduled for Dec. 14 to Dec. 18.

The company said it is also preparing for a possible capital increase of between €40 million and €75 million in 2024.

Major noteholders have already signified their approval.

Based in Berlin, the Grounds Group implements residential projects in German metropolitan regions.

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