Apax Still Hopes for Takko Debt Refi But Chances of Noteholder Takeover Grows

German discount retailer Takko’s sponsor Apax is still pinning hopes on a refinancing of the group’s 2023 debt but a takeover of the company by its noteholders seems increasingly likely, sources told Reorg According to sources, Apax, Takko’s ad hoc group of bondholders and the company’s banks are in “advanced discussions” on how to address the retailer’s maturities but no agreement has been reached. One option sees Apax finding a third-party investor willing to refinance the debt of the company while keeping the current sponsor in control of the business, sources said. The other option, which is seen as more likely by several sources Reorg spoke to, would see bondholders Silver Point, AlbaCore and Napier Park, which control a “very substantial” portion of the 2023 notes and are advised by Houlihan Lokey and Freshfields, taking over the business in a debt-for-equity swap. AlbaCore is also exposed to the company’s senior facility agreement, or SFA, debt. Takko has about €510 million of bonds due in November 2023, with €30 million private placement notes coming due in August 2023 and its €80 million super senior facility maturing in May 2023. Its capital structure also comprises a sizable letter of credit facility of[...]