Houlihan Lokey Advises Adler Group
Houlihan Lokey is pleased to announce that Adler Group S.A. (Adler) has completed the refinancing of its 1.5L Notes, raising €717 million. Houlihan Lokey’s Debt Capital Markets team served as the exclusive financing advisor to the company. The transaction closed in February 2025.
Adler is a Luxembourg-based and German-listed real estate holding company with more than 500 subsidiaries mainly operating in Germany. Adler manages a yielding residential portfolio of approximately 25,000 units and conducts selective development activities across Germany, with a combined gross asset value of approximately €5.5 billion.
After the second restructuring in September 2024, Adler successfully launched a refinancing initiative aimed at reducing interest expenses. Houlihan Lokey supported Adler as its exclusive financing advisor in evaluating and structuring the refinancing solutions.
As the first step, Houlihan Lokey advised Adler on the refinancing of its €1,205 million 1L Notes, successfully reducing the instrument’s coupon by 4.25 percentage points. This transaction was completed in January 2025.
Building on the strong momentum of the 1L refinancing, Adler has now completed the second step by refinancing its 1.5L Notes.
The new structure will reduce interest expenses and is expected to generate approximately €87 million in interest cost savings over the 1.5L Facility’s expected lifetime. The 1.5L Facility will accrue PIK interest at a rate of 10.00% per year, plus a 0.75% original issue discount. It includes noncall protection in the first year and a 1% call premium in the second year, after which it can be redeemed at par. The maturity date remains unchanged at 31 December 2029.
Overall, the refinancing of the 1L and 1.5L Facilities reduces Adler’s cost of debt by approximately €134 million in interest expenses over the expected remaining lifetime, further strengthening the company’s financial stability.
Houlihan Lokey acted as the exclusive financing advisor on all commercial aspects of the refinancing. This deal further highlights Houlihan Lokey’s continued success advising clients in the real estate sector.