Research Update: Keter Group Upgraded To 'CCC+' After Amend And Extend Transaction And Pending Keter Strategic Sale; Outlook Developing

Keter Group B.V. is expected to complete the amend and extend (A&E) transaction of its senior facilities--€102 million revolving credit facility (RCF) and €1,205 million term loan B (TLB)--and €315 million payment-in-kind (PIK) loan shortly. The maturities of the senior and PIK facilities were extended by 17 months, while at the same time Keter raised a new super senior €50 million bridge facility maturing in December 2024, which is available for utilisation until the end of September 2023 and at the date of this report remains undrawn. As part of the A&E transaction terms, the strategic sale of Keter has been initiated, with closing expected before mid-2024, after which we expect all outstanding debt to be redeemed, including the PIK

...- Keter Group B.V. is expected to complete the amend and extend (A&E) transaction of its senior facilities--102 million revolving credit facility (RCF) and 1,205 million term loan B (TLB)--and 315 million payment-in-kind (PIK) loan shortly. - The maturities of the senior and PIK facilities were extended by 17 months, while at the same time Keter raised a new super senior 50 million bridge facility maturing in December 2024, which is available for utilisation until the end of September 2023 and at the date of this report remains undrawn. - As part of the A&E transaction terms, the strategic sale of Keter has been initiated, with closing expected before mid-2024, after which we expect all outstanding debt to be redeemed, including the PIK loan. - If the sale collapses, ownership of the company is transferred to lenders. - We anticipate S&P Global Ratings-adjusted leverage excluding non-common equity instruments (NCE) will be around 8.5x at year-end 2023, with negative free operating cash...

Research Update