Disclosure of an inside information according to Art. 17 of the Regulation (EU) No. 596/2014 (Market Abuse Regulation – MAR) 

LR Health & Beauty SE: BREACH OF LEVERAGE COVENANT / NO INTEREST PAYMENT / STANDSTILL NEGOTIATIONS WITH AN AD HOC GROUP OF BONDHOLDERS / APPOINTMENT OF A REPUTABLE FIRM TO SUPPORT A FINANCIAL RESTRUCTURING

Ahlen, 20 October 2025 – LR Health & Beauty SE (the “Company”) announced on 28 August 2025, that it intended to initiate discussions with the holders (the “Bondholders”) of the 2024/2028 bonds (ISIN: NO0013149658) (the “Bonds”) regarding a potential breach of the leverage covenant requiring the Company to maintain a ratio of net debt to EBITDA^[1] of 4.50:1 as at 30 September 2025 (the “Leverage Covenant”).

Today, the board of the Company identified a breach of the Leverage Covenant and decided to enter into discussions with an ad hoc group of Bondholders with the objective to enter into a standstill undertaking. Furthermore, the Company decided to prioritize operations in the interest of all stakeholders and to defer interest payments. The standstill undertaking shall therefore comprise, inter alia, that Bondholders shall not derive any rights from the breach of the Leverage Covenant and from a non-payment of interest. The purpose of the standstill undertaking is  to provide the Company with sufficient time to complete the assessment of the current situation and establish an appropriate action plan for the Company.

In light of the above, the board of the Company also decided today that a reputable firm shall be appointed to prepare a restructuring opinion to support the negotiations with the Bondholders and to identify appropriate measures in relation to its capital and financing structure in order to sustainably improve the group’s current financial position and to also provide for investment capacity.


IR contact:

cometis AG
Thorben Burbach
Unter den Eichen 7 | Gebäude D
65195 Wiesbaden
Phone: +49(0)611 - 205855-23
Fax: +49(0)611 - 205855-66
E-mail: burbach@cometis.de
 

^[1] EBITDA, as defined in the terms and conditions for the Bonds which can be found on the Company’s website, https://ir.lrworld.com/en/bond/.