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Adler Group SA has drawn on a € 300 million ($ 347 million) line of credit, tapping into a key source of liquidity as the German owner grapples with allegations of short sellers that caused prices to plummet. its actions and obligations.
Adler arranged the revolving credit facility with Barclays Plc, Deutsche Bank AG and JPMorgan Chase & Co. in March and listed it as available liquidity in its last earnings report in August. He has since taken the full amount, said a person familiar with the matter who requested anonymity while discussing the private information.
Bank officials declined to comment. A spokesperson for Adler did not respond to multiple requests for comment.
The use of the revolving credit facility highlights the plight of the German real estate company as it embarks on asset sales to reduce its $ 9 billion debt. The company’s co-chief executive said on Aug.31 that the company had no plans to use the facility.
Some of the world’s largest banks have re-examined their relationships with Adler, after an anonymous whistleblower warned of murky business relationships and complex cross-shareholdings used by Austrian magnate Cevdet Caner to control the company, Bloomberg reported.
The allegations, along with an attack by short seller Fraser Perring, could make Adler’s access to bond markets difficult. The Adler Group’s last bond transaction in April this year was valued at a yield of 2.5%. For comparison, Adler’s € 500 million bond due next month, of which € 170 million remains outstanding, is offered at a yield of 9.9%, according to Bloomberg prices. .
Adler announced last month that it had reached an agreement to sell assets valued at more than one billion euros. Net proceeds are expected to be around € 600 million after repayment of secured loans, which would bring the company’s loan-to-value ratio to less than 50%, the level Adler said he is aiming for in the medium term.
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