Fri 09/18/2020 06:44 AM
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Debt Negotiations

Dutch dental chain operator Curaeos’ RCF and term loan lenders have approved a proposed debt restructuring plan, Reorg reported on Wednesday. The plan features a swap of approximately €70 million first lien debt for warrants for 25% of the company’s equity and another €75 million of first lien debt being exchanged for a new junior toggle note.

Continue reading for the EMEA Core Credit by Reorg team's update on the Coronavirus impact including the Cureos debt restructuring, and request a trial to access Reorg's coverage of thousands of other debt restructurings. 

The deal received unanimous consent from creditors, which means the company does not have to use a legal process, such as a scheme of arrangement, to implement the transaction. The agreement is expected to close in a month. Under the plan, EQT remains in control of the business and will provide €50 million of equity. Curaeos and EQT are advised by Houlihan Lokey and Clifford Chance while lenders are working with Latham & Watkins and PJT. The group’s restructuring proposal aims to reduce its interest burden so the business is in a better position to defend market share as clinics return to normal operations after Covid-19-induced closures. Curaeos’ cost base has been under strain due to a number of acquisitions in recent years.

Italian football club AS Roma received all necessary consents from bondholders at a meeting held yesterday, Sept. 17. The supplemental indenture implementing the approved resolutions will become effective today, Sept. 18, and will become operative upon the payment of the consent payment.

The company was soliciting consents from its noteholders to waive the €275 million senior secured noteholder rights regarding the 101 change-of-control put provisions and amend the change of control, permitted holders and permitted reorganization language in the notes indenture. This is in relation to the sale of 86.6% of the company to the Friedkin Group.

Norwegian offshore support provider DOF ASA has requested bondholder consent to extend its standstill agreement to Dec. 15 from Sept. 30, Reorg reported on Wednesday. The company said that while progress has been made, an agreement for the restructuring of the group will not be reached before the current deferral and standstill agreements expire.

The majority of existing lenders have been requested to extend the senior standstill agreement until and including Jan. 31, 2021.

As part of the standstill bondholders agree to suspend and defer interest payments for the duration of the agreement.
Debt Explained has reviewed bond documentation for AS Roma HERE.

Debt Explained has reviewed loan documentation for Curaeos. To get in touch with our team, click HERE.

Reorg’s coverage of Curaeos is HERE, AS Roma is HERE and DOF ASA is HERE.

Covenants & Waivers

Commercial real estate group Vivion has agreed a 12-month financial covenant waiver to July 13, 2021, on secured debt relating to several hotels in the U.K, according to the company’s report on Wednesday. As part of the waiver, the group deposited £28 million in a bank account that will be released by lenders following two consecutive quarters of compliance with the covenant after the end of the waiver period. The group is in compliance with all of its other covenants.

Vivion reported a 44% year-over-year fall in revenue to €95.8 million in the first half after disposing of its hotel operations in August 2019 and transforming to a real estate company. Compared with the second half of last year, revenue decline was 10.3%, which was primarily driven by a disposal of one hotel in the U.K. and the currency effect on U.K. revenue, which was partially offset by higher rental income in the U.K. and Germany. Adjusted EBITDA was €71.7 million, compared with €74 million in the second half of last year. Adjusted EBITDA margin was 74%, compared with 69% in the second half of last year, or compared with 34.1% in the first half of last year before exiting the hotel operations.

Spanish-headquartered silicon metal producer Ferroglobe is being advised by Milbank as legal advisor and Houlihan Lokey as financial advisor as the company seeks to extend the maturity on its 2022 bonds, Reorg reported on Thursday.

Management told investors during a Sept. 1 earnings call that extending the maturity on the group’s $350 million 9.375% notes due March 2022 was a key priority for the company. Management would not disclose if negotiations had begun. The 2022 notes are quoted at 65.

Norwegian seismic explorer PGS said it has extended its $135 million RCF by one week to Sept. 25 as the company seeks to conclude an amend-and-extend agreement with its lenders.

PGS said negotiations with export lenders and investors holding the $350 million RCF and $520 million term loan B are advanced and constructive. Management said it believes it is close to reaching a deal that will extend maturities and amortizations significantly.
Debt Explained has reviewed bond documentation for Vivion HERE, Ferroglobe HERE and PGS HERE.

Debt Explained’s RCF Tracker is HERE.

Reorg’s coverage of Vivion is HERE, Ferroglobe is HERE and PGS is HERE.

Primary Market

On Monday, French telecom operator Altice France launched a €900 million equivalent eight-year, non-call three senior secured bond split between a euro and a dollar tranche. The group priced its €900 million-equivalent senior secured notes due 2029, with the €500 million euro tranche pricing at 4.125% and the $475 million dollar tranche pricing at 5.125% on Tuesday.

Of the proceeds, a €750 million portion is expected to be made available to Altice Group Lux to repay its corporate financing facility and the rest of the proceeds will repay €150 million of borrowings expected to be outstanding under Altice’s France’s RCF.
Debt Explained has reviewed bond documentation for Altice France HERE.

Reorg’s coverage of Altice Europe is HERE.
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