...- Keter Group implemented its distressed debt exchange transaction on April 29, 2024. The new capital structure reduces the amount of senior secured debt and cash interest burden, and improves the debt maturity profile. The new capital structure, including capitalized transaction fees, comprises a 728 million term loan B, due 2029, and 698 million payment-in-kind (PIK) notes sitting outside of the restricted group, due 2029, that we view as debt under our criteria. Keter also has a 50 million super senior facility maturing in 2026. - In our base case for Keter, we forecast S&P Global Ratings-adjusted leverage of 6.0x-6.5x, including the PIK notes (3.5x-4.0x excluding the PIK notes), positive free operating cash flow (FOCF), and funds from operations (FFO) cash interest coverage of 3.0x-4.0x over 2024-2025. We factor in that the group held approximately 131 million in cash as of Feb. 29, 2024, and will continue to have access to credit lines to ensure adequate liquidity and continuous operations....
