Pfleiderer - comment

Today the German manufacturer of premium engineered wood products launched an amend and extend of its existing sustainability-linked senior secured notes. The terms of the A&E include three-year extension of the maturity of the existing notes to April 15th 2029 in return for enhanced economics and fees to bondholders. They include a coupon uplift of 4% PIK and 1% exit fee (from April 15th 2027) for the fixed rate notes and a coupon uplift of 0.75% PIK and 1% e:xit fee (from April 15th 2027) for the floating rate notes. The transaction will be implemented by a UK Scheme of Arrangement with a 75% consent threshold and the bondholders voting as one class. In addition, SVP will also be injecting €75 million of equity into the company. In addition, Pfleiderer has also reached an agreement with 100% of its lenders to extend the €65 million super senior RCF to January 15th 2029.    

There is a call today at 1 pm UK time / 2 pm CET to discuss the transaction and the operational update.  We are long the SSNs for 6% of NAV after topping up early last month 10 points lower.