DGAP-News: GAGFAH S.A.: New EUR 700 Million CMBS at Very

DGAP-News: GAGFAH S.A. / Key word(s): Miscellaneous GAGFAH S.A.: New EUR 700 Million CMBS at Very Attractive Terms Plus Additional Refinancings 09.10.2013 / 18:05 --------------------------------------------------------------------- Press Release: October 9, 2013 GAGFAH S.A. 2-4, rue Beck L-1222 Luxembourg ISIN: LU0269583422 Frankfurt Stock Exchange (Ticker Symbol: GFJ) Regulated Market (Prime Standard) GAGFAH: New EUR 700 Million CMBS at Very Attractive Terms Plus Additional Refinancings - New EUR 700 million CMBS with coupon of 2.71% as compared to 5.17% on the previous CMBS - New loan of EUR 145 million for Acquisition 1 portfolio and extension of EUR 200 million GBH loan - Refinancing process now basically completed GAGFAH has taken another major step towards improving its capital structure by resolving the refinancing of the loan maturities for five of its sub-portfolios with a total debt volume of more than EUR 1 billion. Following the successful refinancing of EUR 1 billion for the WOBA portfolio and EUR 2 billion for GRF earlier this year, the Company has refinanced more than EUR 4 billion in only nine months. GAGFAH has now signed the financing of the five-year EUR 700 million CMBS for the WBN, WGN and NILEG Residential portfolios ('NILEG'). The coupon on the new CMBS will be 2.71%, almost 250 basis points lower than the 5.17% on the previous CMBS. The amortization will be 0.5% per annum. The LTV of the portfolio is 65%. The paydown of the CMBS currently still in place is expected to take place on the next IPD date on October 21. In addition, GAGFAH has signed a new three-year loan agreement for the Acquisition 1 portfolio of about EUR 145 million with a coupon of 2.87%. The previous loan for this portfolio, which had a coupon of 4.44%, had been fully repaid with the proceeds from the July equity event. The proceeds from the new loan plus additional cash from the operating business will be used to repay EUR 190 million of the old NILEG CMBS and bring the new loan amount down to EUR 700 million. GAGFAH also agreed on a two-year extension for the EUR 200 million GBH loan. The Company plans to reduce the LTV of this portfolio and to invest additional capex in order to further improve the operational performance before securing a longer term financing. These transactions complete the refinancing of almost all of GAGFAH's near-term maturities, except for EUR 85 million due in April 2014 and EUR 360 million due in October 2014, which the company will address in due time. Gerald Klinck, CFO of GAGFAH GROUP, commented 'We are very excited to secure yet another refinancing at such attractive terms. Refinancing more than EUR 4 billion of debt in such a short time and doing so at significantly lower interest rates is a great success.' Thomas Zinnöcker, CEO of GAGFAH GROUP and member of the Board of Directors of GAGFAH S.A., added 'Lowering our overall cost of debt by more than 100 basis points compared to the end of last year gives a significant boost to our FFO profile. Combined with our planned capex investments, our operational improvements and our portfolio strategy, we are about to turn around the company in a very short time and lead it into an extremely promising future.' Contact GAGFAH S.A. Investor Relations Rene Hoffmann 2-4, rue Beck L-1222 Luxembourg Tel.: +352 266 366 21 rhoffmann@gagfah.com www.gagfah.com R.C.S. Luxembourg B 109.526 Media Dirk T. Schmitt +49 175 721 4836 dschmitt@gagfah.de About GAGFAH S.A. GAGFAH S.A. is a joint stock corporation organized under the laws of the Grand Duchy of Luxembourg qualifying as a securitization company under the Luxembourg Securitization Law of March 22, 2004. The core business of GAGFAH S.A.'s operating subsidiaries is the ownership and management of a residential property portfolio located in Germany. GAGFAH's portfolio includes about 144,000 own residential units and more than 35,000 units under property and facility management for third parties. Our portfolio makes us one of the largest residential property companies listed in Germany, and we believe that our size, our significant presence in the key residential markets and our scalable operating platform make us one of the leading providers of housing for low- to medium-income households in Germany. Our operating subsidiaries are full-scale service providers for a broad range of property and facility management services with a clear focus on residential properties. The key elements of our strategy are (i) to create sustainable and increasing cash flows out of the existing asset base (rent, occupancy, property costs, platform), (ii) to invest in value-enhancing portfolio properties (iii) to pursue accretive growth opportunities and (iv) to realize value through asset sales. End of Corporate News --------------------------------------------------------------------- 09.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: GAGFAH S.A. 2-4, rue Beck 1222 Luxemburg Grand Duchy of Luxembourg Phone: + 352 266 366 1 Fax: + 352 266 366 01 E-mail: info@gagfah.com Internet: www.gagfah.com ISIN: LU0269583422, LU0269583422 WKN: A0LBDT Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 233987 09.10.2013