Galapagos SSNs to par

All,

Triton are leapfrogging the SUNs with E140m fresh cash - E25m of which upfront to fund the next months and the remainder at close of a Scheme of Arrangement. This leaves the SUNs fighting Triton for nuisance value in the equity, although Triton have left the door open for co investment. If no agreement can be reached, the secured creditors can enforce against BidCo for an asset sale to a NewCo and clip the SUNs off entirely. This sounds like the COMI shift scenario we outlined in our analysis here. 

Half the cash goes to clean down the fully drawn RCF (RCF and LGs to be re-set at lower levels) and the SSNs are to be re-instated or partially replaced with an alternative transaction. E40m are earmarked for a 2020 wind-down of the Dry-Cooling business (later than we thought). The remainder of Enexio is then to be folded into Kelvion (long overdue). 

In short. Triton are making a huge renewed commitment. The deal structure should work and the SSNs should be reinstated at par with 8.25% cash coupon +1% consent fee and +3% in case they need to administer the COMI shift. Alternatively, Triton manage to find more eager investors and the SSNs receive cash instead.

The SUNs are fighting for token equity.

Wolfgang