Tear Sheet: AFE S.A.

Despite the high interest rate on the new credit facility, the PIK interest provides relief for AFE's liquidity needs but might lead to the accumulation of debt over time if not repaid ahead of maturity. The interest rate on AFE's senior secured notes was increased to Euro Interbank Offered Rate (EURIBOR) plus 750 basis points (bps). Although we think AFE will generate sufficient earnings to service its debt, the relatively high interest burden will affect the amount of cash AFE can reinvest into its business growth. Meanwhile, AFE's equity was transferred to the new holding structure where Arrow Global Group's fund has controlling ownership. AnaCap Financial Europe (AFE S.A.) provides debt-purchasing solutions in Europe, investing in portfolios of unsecured and

...Debt restructuring implemented earlier this year allowed AFE to improve its debt maturity profile and liquidity. In February 2024, AFE amended some terms of its senior secured notes, extending their maturity by six years to July 15, 2030. It also issued an additional tranche of the notes of 35.7 million at discount, attracting a further 25 million in cash. AFE also received 132.9 million in a new six-year super senior term loan facility, which ranks senior to the senior secured notes, and has a 1.0% cash interest and 11.5% payment-in-kind (PIK) interest. As a result, AFE has received roughly 34.1 million of available liquidity (net of transaction costs) and does not have mandatory debt repayment needs in the coming years. Despite the high interest rate on the new credit facility, the PIK interest provides relief for AFE's liquidity needs but might lead to the accumulation of debt over time if not repaid ahead of maturity. The interest rate on AFE's senior secured notes was increased to...

Full Report