Atalian - comment

Atalian have reached an agreement with the ad-hoc bondholder group to extend maturities of the 2024 and both 2025 bonds until June 2028, with the new bonds having (3.5% cash and 5% PIK coupon).  In addition, €400m of cash, split €240m of rate 2024 notes, €92m for the Euro 2025 and €68m of rate Sterling 2025 bonds.  The ad-hoc Group, represented by Perella, account for 39% of the outstanding bonds.  There is an early bird fee,  and completion likely by Mid March if 90% of each bond group consents 

The Company have outlined the alternative, if 2/3rds level reached, but not 90%, of an Accelerated Safeguard Procedure, which would run through Q2. 

The plan extends the maturities, and retains a significant amount of cash on balance sheet to operate over the coming years.  We are surprised that there is only 39% of bondholders in the ad-hoc group, and the cash coupon is so low in the current environment.