OHL - initiation

All,

We are initiating on OHL. Please find our files here.

Since the arrival of the new management in mid-2018, OHL has made significant progress in finalizing or disposing of its legacy portfolio of problematic projects. This has translated into significant improvement on gross margins, FCF and EBITDA. While management previously saw its liquidity war chest as sufficient to fund this transformation process, the coronavirus crisis seems to be forcing management's hand into at least some form of haircut for the existing bondholders.

On 3 July 20, OHL issued a notice to bondholders to meet on 20 Jul 20 to approve certain changes to the bond documentation, including a waiver of the negative pledge and the rights to acceleration to allow for the security package to the EUR140m state backed facilities to be granted. This has since been postponed twice, now to 4 Aug 20.

 We are looking forward to exchanging ideas on CGG with you.

Juliano