Oriflame - comment

Overall, we rate this a win for the family. The reinstated bonds are to toggle between 8% cash and 12.5% PIK, and are receiving 2L status, but are running for seven years. Details on the deal were published yesterday. Bonds are being written down to 33c/€ and the €50m of new money are split so that with €25.5m the af Jochnick family retains control, receiving 51% of the shares. Structurally the shreholder new money comes in the form of new notes, while the bondholder money goes in super sr. with the RCF. In the end, bondholders will receive 49% of the equity,  but we are not sure about the exit from the minority share. Consent solicitation comes in April.