Houlihan Lokey Advises Adler Group
Houlihan Lokey is pleased to announce that Adler Group S.A. (Adler) has completed the refinancing of its c. €1.2 billion 1L notes, raising €1,177,819,300. Houlihan Lokey’s Debt Capital Markets team served as the exclusive financing advisor to the company. The transaction closed in January 2025.
Adler, a German-listed real estate developer and operator, manages a yielding residential portfolio of approximately 25,000 units and conducts selective development activities across Germany. Its combined gross asset value is approximately €5.5 billion.
After the second restructuring in September 2024, Adler started a successful refinancing initiative to reduce interest expenses and alleviate the financial strain of the 1L notes.
Adler had intensive and constructive talks with many investors in order to agree on a good deal for all stakeholders, resulting in a solution that aligns closely with Adler’s business plan and asset disposal strategy.
The newly implemented 1L facility accrues payment-in-kind interest at a significantly reduced rate of 8.25% per annum, compared with the previous 12.50%, and excludes call protection. This structure is expected to generate approximately €47 million in interest cost savings over the facility’s expected remaining term while providing Adler with the flexibility to repay the 1L facility progressively using proceeds from ongoing and planned asset and portfolio disposals.
Houlihan Lokey served as Adler’s exclusive financial advisor, analysing and assessing various options. The resulting solution was carefully tailored to Adler’s objectives of maintaining financial flexibility, reducing interest costs, and seamlessly aligning with its overarching business plan.