Intralot Working on 2021 Notes Restructuring Plan; Debt Workout Plan Details Still Under Discussion

Greek gaming group Intralot is expected to launch a proposal to restructure its €250 million 2021 notes next week, sources tell Reorg.

Details of the proposal are still being discussed but several sources told Reorg that the restructuring proposal could entail a partial repayment of the notes in cash and a partial reinstatement as senior secured notes. A portion of 2021 could also be equitized, sources added. Oakhill and Beachpoint are among the largest 2021 noteholders, though they also have some cross-holdings in the group’s €500 million 2024 notes, as reported. Continue reading for the EMEA Core Credit by Reorg team's update on the Intralot restructuring proposal, and request a trial for our coverage of  stressed, distressed and high-yield credits in the region.

The proposal does not include plans to restructure the 2024 notes, sources added. Holders 2024 notes include Gramercy, Morgan Stanley and Alchemy. A group of 2024 holders are working with PJT and Dechert as financial and legal advisors, respectively.

Holders of the 2021 notes are working with Houlihan Lokey and Millbank. The company is advised by Evercore and has retained Allen & Overy to assist in a strategic review of its capital structure.

In a Dec. 8 earnings call management said it was aiming to maintain operational metrics at 2019 levels, depending on the impact of the Covid-19 pandemic, replacing losses from Bulgaria with new EBITDA mainly from the U.S. and other projects as well as targeting a 26% reduction in operating expenditure.

Full-year 2020 EBITDA is forecast in the €60 million to €62 million range, after a Covid-19 impact of €25 million to €28 million. It also said it expects the U.S. lottery business to contribute $50 million.

-- Luca Rossi, Connor Lovell, Aurelia Seidlhofer