Research Update: Keter Group B.V. Downgraded To 'SD' On Lenders Consent To Implement Distressed Debt Exchange

On April 25, 2024, Keter received lenders' consent to implement its capital restructuring, with implementation having taken place on April 29, 2024. The former capital structure comprised of a €1,246 million first-lien term loan B (TLB), a €106 million first-lien revolving credit facility (RCF), and a €50 million super-senior bridge loan. The transaction entails €725 million of first-lien debt being converted into a new TLB due in December 2029 and the remaining debt of €652 million into a new holdco payment-in-kind (PIK) facility that sits outside the restricted group and is due in December 2029. Together with capitalized transaction fees, the post-transaction balances will be €728 million of new TLB and €698 million of holdco PIK notes. The existing €50

...- On April 25, 2024, Keter received lenders' consent to implement its capital restructuring, with implementation having taken place on April 29, 2024. The former capital structure comprised of a 1,246 million first-lien term loan B (TLB), a 106 million first-lien revolving credit facility (RCF), and a 50 million super-senior bridge loan. The transaction entails 725 million of first-lien debt being converted into a new TLB due in December 2029 and the remaining debt of 652 million into a new holdco payment-in-kind (PIK) facility that sits outside the restricted group and is due in December 2029. Together with capitalized transaction fees, the post-transaction balances will be 728 million of new TLB and 698 million of holdco PIK notes. The existing 50 million super-senior bridge loan maturing in 2026 remains in place. - We view the transaction as a distressed exchange and tantamount to default considering lenders will receive less than originally promised without adequate compensation in...

Research Update