Adler - comment

We are disappointed this morning that the 2LNs are unable to take out the vast 1L and 1.5L financing ahead of them. The transaction also leaves €2.3bn of ugly (if tax-efficient) perps outstanding and leaves the group with less cash in 2028 than we had expected. We will have to sharpen our pencils and calculate through the new PIK interest burden, but we are concerned that those facilities will PIK too fast to allow for value accrual to the 2LNs and equity behind them.