REFILE-RLPC-Autobar's debt restructuring plan outlined - bankers
By Sandrine Bradley
LONDON, June 13 (Reuters) - Details of UK vending machine business Autobar's debt restructuring have emerged after private equity firm CVC walked away from its equity investment in the company, bankers said on Friday.
Autobar is set for a debt for equity swap which will wipe out nearly half of its 930 million euro ($1.27 billion) debt. The restructuring has already been agreed by ten investors representing 65 percent of lenders, a banker close to the deal said.
A group representing the remaining 35 percent of creditors have until the middle of July to agree to the restructuring, which will see lenders take control of the company, banking sources said.
A lender-led restructuring plan was presented to all lenders at a meeting in London on Thursday after private equity owner CVC agreed to walk away from the business which it acquired in 2010.
CVC declined to comment.
The lender group includes original lenders and the co-ordinating committee of creditors, which included GSO, Eaton Vance, MNG Investments and Rabobank, as well as funds that have bought Autobar's loans in the European secondary loan market, including York Capital Management and Angelo Gordon.
Under the terms of the deal, Autobar's debt will be reduced to around 450 million euros from around 930 million euros, which represents all of Autobar's debt including accrued interest, the banker said.
Autobar's debt is currently structured as senior debt only. The reinstated debt post restructuring will also be senior debt only, with some additional cash coupons.
"The fact that the debt did not include any junior debt and that CVC acted in such a constructive way enabled us to get to this point very quickly," said the banker.
Autobar's loans continue to trade in Europe's secondary market. Nearly 40 percent is now in the hands of funds as the original lenders who do not want to be involved in a debt for equity swap continue to sell their exposure, the bankers said.
Autobar's loans were quoted at around 82.5 percent of face value on Friday, according to Thomson Reuters LPC data.
CVC bought Autobar from Charterhouse backed with 785 million euros of leveraged loans which were refinanced and increased in 2012, according to Thomson Reuters LPC data. ($1 = 0.7345 Euros) (Editing by Tessa Walsh)
- Israel pummels Gaza; Kerry steps up diplomatic push |
- Ukraine war crimes trials a step closer after Red Cross assessment
- South Korea ferry fugitive hid behind cabin wall, bags of cash at hand
- With sales sputtering, Apple's iPad looks to IBM alliance
- Five held in China food scandal probe, including head of Shanghai Husi Food