Clariane - comment

Colisée, a peer of Clariane, has seen its Term Loan B price fall into the 50s from the low 90s due to its overleveraged balance sheet and some upcoming maturities. We are public on the name, so details are scant; however, press reports refer to some short-dated bilateral loans that can be withdrawn with 60 days' notice. Colisée’s issue is staffing costs, which have hit EBITDA and cashflow generation due to the use of expensive temporary staff. Advisers are swarming with EQT, the sponsor, advised by Gibson Dunn.  The Company have engaged with Rothschild and Latham & Watkins. The TLB, 40%+ of whom have organised into an ad-hoc committee, are using White & Case.

Moody’s has downgraded the TLB to Caa2, still on negative watch as the Company appear to be in the process of proposing to defer interest payments and seeking an Amend and Extend to the 2027 Term Loans.