Article/Intelligence
UPDATE 1: SVP Offering Pfleiderer Bondholders 100 Bps Margin Uplift, Around €80M Equity Injection for 2-Year Extension
Thu Jun 06, 2024 10:39 AM ET: Pfleiderer sponsor Strategic Value Partners, or SVP, is offering bondholders a 100 bps margin uplift and will inject around €80 million of equity into the German engineered wood products group in exchange for a two-year extension of the bonds, sources said. Original Story 11:22 a.m. UTC on June 5, 2024 SVP Presounds Pfleiderer Bondholders Over Potential A&E Supported by Equity Injection; Goldman Sachs Advising Reporting: Robert Schach Relevant Item: Reorg Waterfall Analysis Pfleiderer sponsor Strategic Value Partners, or SVP, has started presounding some of the largest holders of the German engineered wood products group’s bonds over a potential amend-and-extend transaction supported by an equity injection. Goldman Sachs is advising SVP on the transaction, sources said. Pfleiderer has €350 million sustainability-linked senior secured floating rate notes, or FRNs, paying Euribor+475 bps and €400 million sustainability-linked senior secured fixed rate notes, both maturing in April 2026, which means it needs to refinance the notes before April next year. Its earnings, over the last three years, are currently at their lowest level due to plummeting volumes on deteriorated new construction activities and less post-Covid-19 refurbishment demand in Germany. As a result, leverage reached[...]