Fri 06/26/2020 08:05 AM
Debt Negotiations

Justice Zacaroli said yesterday that he was “not going to derail the process” of U.K. car maker McLaren’s request for permission to raise new debt secured on its heritage assets (including its collection of F1 racing cars) and its Woking plant, despite bondholder objections. The judge confirmed a timetable for giving evidence for 4 p.m. BST today.

McLaren applied to the High Court of England last week seeking juridical approval that, under the terms of the documentation of its senior secured notes, it can: i) incur certain asset-backed lending; and/or ii) use a J.Crew trapdoor-style structure to invest assets in an unrestricted subsidiary and raise structurally senior debt at that unrestricted subsidiary against those assets, Reorg reported.

The group’s bondholders - who objected to the expedited proceedings - have hired Paul Hastings to resist the fundraising, with Boies Schiller acting as the creditors’ litigation counsel. The company is represented by Ashurst.

DIA’s 2021 bondholders have split into two groups, one advised by Milbank and the other assisted by Weil Gotshal, Reorg reported. The first group has taken a step back from negotiations with the company but things may change quickly in the near future, sources said. Parties have been discussing a potential debt-for-debt swap on DIA’s 1% €300 million 2021 notes.

The Milbank bondholder group also consists of a small portion of holders of DIA’s 2023 €300 million bonds. The Spanish retailer is assisted by Goldman Sachs as its financial advisor. Neither group in the 2021 bonds has hired financial advisors.

The company’s 1% €300 million notes due 2021 traded at 80/81 on Wednesday, having been quoted at 90 in February, while its 0.875% €300 million bonds due 2023 were indicated at about 50 from about 55 in February.

OHL’s negotiations with creditors have been extended by a month from June 30, to allow for

more time to reach a deal on a new credit line and debt restructuring, Reorg reported. The Spanish construction company’s coupons are due in September.

The group is working with Houlihan Lokey and JP Morgan as financial advisors to explore refinancing options. A group of the Spanish construction group’s bondholders has organized and is working with PJT Partners.

Debt Explained has reviewed bond documentation for McLaren HERE and OHL HERE.


Reorg’s coverage of McLaren is HERE, DIA is HERE and OHL is HERE.

Covenants & RCFs

More than 66% of ShaMaran’s bondholders have reached an agreement with the Canadian oil exploration group to waive a breach of the company’s equity ratio covenant for 12 months until July 5, 2021. In a statement on Thursday, ShaMaran said it had also secured a 15-month deferral of an obligation to amortize $15 million on the $240 million 12% senior unsecured 2023 bonds. The repayment is now due on Dec. 5, 2021, but a cash sweep mechanism will be introduced in the interim.

Bondholders have until July 9 to vote on the proposal, which requires two-thirds consent to pass. The ad hoc group of noteholders represents more than 50% of the notes and is led by CF Partners, GML Capital and VR Capital. Akin Gump acts as legal advisor to the bondholders.

Imagina Media’s lenders have recently agreed to a waiver request from the company seeking to amend some of its debt documentation after receiving a €125 million new facility, Reorg reported. The Spanish TV and sports media group’s new cash will be backed by Spain’s Covid-19 guarantee line scheme, also known as Instituto de Crédito Oficial, or ICO, lines.

Banks providing the financing include Santander and Caixabank. Existing lenders to Imagina include funds such as BlackRock and Carlyle, according to stock exchange filings.

The company, which suffered from the disruption of televised football due to the pandemic, tapped into €60 million of its revolving credit facility at the end of the first quarter of 2020, according to Fitch.

A group of Comdata’s lenders is working with Rothschild and Linklaters as its financial and legal advisors for upcoming talks with the Italian outsourcing services provider, Reorg reported. The group consists of the company’s main CLO and bank creditors. Comdata is working with Houlihan Lokey as its financial advisor.

Comdata has requested a covenant waiver from its lenders for the company’s June and September tests. The company has also made a request to lenders for a €50 million government-guaranteed loan to boost its liquidity in case of a second coronavirus wave. The process is ongoing but is not considered a priority at this stage. The company initially considered applying for an €80 million loan even though it does not have an immediate cash need.

Debt Explained has reviewed loan documentation for Comdata. To get access, you need to provide a copy of the relevant document. Click HERE to get in touch with our team.


Debt Explained’s RCF Tracker is HERE.


Reorg’s coverage of ShaMaran is HERE, Imagina is HERE and Comdata is HERE.

Primary Market

Austrian sensor solution group Ams has today reopened the books for its two new bonds to allow for any amendments following allegations that management’s share trading is under investigation, Reorg reported.

The company disputes reports that Austrian authorities are investigating its management.

Yesterday, June 25, the company released a statement saying “Ams clarifies that it is not aware of any investigation by, or regulatory request related to, its employees, board members or the company and its subsidiaries by any financial markets or other authority. Today’s reports make reference to historic allegations made by media outlets in 2019. Already back then Ams clearly stated that it had no knowledge of any investigation by financial market authorities against any employee or board member of Ams.”

Thyssenkrupp Elevator’s new notes, launched to support the acquisition of the group by Advent and Cinven, contain some of the most aggressive covenants ever seen in the European market. The issuance will consist of €750 million seven-year non-call three senior secured notes, €1 billion seven-year non-call one senior secured FRNs, €1.25 billion equivalent-in-dollars seven-year non-call three senior secured notes, €650 million eight-year non-call three senior notes, and €400 million equivalent-in-dollars eight-year non-call three senior notes.

The group has also launched a seven-year €3.05 billion term loan B in euros and dollars, the deadline of which has been brought forward to 3 p.m. BST on June 30.

On Thursday, producer of window and door profile systems and solutions Profine increased the size of its seven-year senior secured bond deal by €10 million to €340 million, and priced it at 9.25%.

Debt Explained has reviewed bond documentation for Ams HERE, Thyssenkrupp Elevator HERE and Profine HERE.


Debt Explained has reviewed the term sheet for Thyssenkrupp Elevator’s new loan. To get access, you need to provide a copy of the term sheet. Click HERE to get in touch with our team.


Reorg’s coverage of Ams is HERE, Thyssenkrupp Elevator is HERE and Profine is HERE.
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