Aggregate - comment

As per our last note, bondholders had little option but to give the developer more time to create wealth. Without mentioning concrete figures, Aggregate have communicated the success of the consent solicitation, resulting - aside from PIK interest with an incremental 2.75%, in the removal of its financial covenants and the lifting of the definition of “Material Subsidiary” from 10% to 20% of total assets. We fully understand all changes to the documents, but are perhaps the most weary of the last one. We have not seen the bonds pop on the announcement, nor was it likely. We would certainly have welcomed better structural and security terms for the bonds and are a bit disappointed that bondholders did not ask for that. But on balance the success of the solicitation is good news nonetheless, as it avoids entering into a process at this very untimely juncture.