Rekeep - comment

Rekeep posted its Q4 and FY24 numbers on Friday, most of which were released as part of the refinancing in February. Takeaways from the call include the fact that management remains confident that the renewal rates will increase as 2025 progresses after a disappointing success rate in FY24. In addition, the Polish business continues to accelerate, which has led to an increase in the put option value.  The put option is exercisable from Dec 27 to Dec 28. The €29m cash from the Saudi settlement was received in January, boosting liquidity for Q1.  

The bonds remain at 99% which yields 9%, having initially priced at 97.5%. The documentation was tightened significantly as part of the refinancing. We intend to write a fuller note in the weeks to come.