Fri 09/11/2020 13:34 PM
UPDATE 1: 1:34 p.m. ET 9/11/2020: A group of investors representing about 40% in value of Europcar’s €600 million 2024 senior secured notes and €450 million 2026 notes have mandated Lazard and Latham & Watkins, sources told Reorg. Continue reading for the EMEA Core Credit by Reorg team's update on the Europcar debt restructuring, and request a trial to access Reorg's coverage of thousands of other debt restructurings. 

One group of €500 million of EC Finance notes representing about 25% of value are working with Milbank as their legal advisors, as reported, but another group representing about 20% in value of the same notes is also working with Lazard and Latham & Watkins, according to sources. The latter includes some investors with cross-holdings between the two bonds, sources commented.

The groups are evolving and sizes could change.

Rothschild & Co is acting as financial advisor of the company, while Darrois Villey Maillot Brochier, Gide Loyrette Nouel and Kirkland & Ellis are working as legal advisors.

Several investors Reorg spoke to expect Europcar to require new money but it is unclear how much.

--Aurelia Seidlhofer




Original Story 6:45 a.m. UTC on Sep. 9, 2020

Lazard Tipped for Europcar 2026, 2024 Bondholder FA Mandate, to Work Alongside Latham & Watkins as Legal Advisor; Group of €500M EC Finance SSN Holders Assisted by Milbank

A group of investors holding Europcar’s €600 million 2024 senior secured notes and €450 million 2026 senior secured notes has put Lazard in pole position to receive the mandate as its financial advisor alongside Latham & Watkins as legal advisor, sources told Reorg.

Meanwhile, some holders of the company’s €500 million EC Finance notes, representing about 25% by value, are working with Milbank as their legal advisor. The noteholder group will host a call later in the week.

The French rental car company announced yesterday that it is seeking approval to appoint a mandataire ad hoc and/or conciliateur (which requires the agreement of various financial creditors of the group) to facilitate financial restructuring discussions.

Europcar’s 2026 and 2024 notes fell about 7 points after the announcement on Monday and are quoted at about 40 today, while the €500 million notes due 2022 are quoted at 86/88.

Rothschild & Co is acting as financial advisor of the company while Darrois Villey Maillot Brochier, Gide Loyrette Nouel and Kirkland & Ellis are working as legal advisors.

The group's first half results showed a strong negative impact of the Covid-19 pandemic and the current capital structure weighs on its ability to ensure a proper path to recovery. Europcar sales fell 69% year over year in the second quarter, while the group’s corporate EBITDA, including IFRS 16, was negative €209 million in the six-month period ended June 30, compared with positive €82 million a year earlier.

Lazard declined to comment.

-- Aurelia Seidlhofer, Luca Rossi, Jaishree Kalia
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