Food Delivery Brands, restaurant group Managing Telepizza and Pizza Hut in Spain, reaching an agreement with its creditors and shareholders refinance your debt within the framework of its strategy to increase the business and its future growth.
Thus, the signing of the agreement to refinance the debt, Deduction of close to 240 million euros and extension of repayment terms planned by 2028, also 71 million injections euro.
The final stages of the operation, which is subject to a judicial formalization process and whose framework agreement was signed last January, as it is expected to conclude in the second half of this year, is supported by a group of senior bondholders representing more than 80 groups. percentage of the total.
Bondholders take control
Closing this process, Oak Hill Advisors, LP, Blantyre Capital Limited, HIG Capital, LL. This would mean a change in the shareholding of Food Delivery Brands, the current owners of the company’s primary debt, including Fortress Investment Group LLC and TREO. AM will take control of the group and existing shareholders will be fully diluted.
The new shareholders injected new funds worth 31 million euros. to guarantee the liquidity of the group While all legal steps are formalized as reported by the company in a related incident.
This financial support expandable to approximately 60 million At the end of the process, it shows the trust and commitment of bondholders to the company and the business. To this figure is also added an injection of 11 million to existing shareholders after judicial approval of the process.
The agreement signed to restructure the debt includes capitalizing a significant portion of the Group’s current debt, approximately 50%, at a discount of close to €240 million, and extending the expected repayment terms until 2028, which is x4 gross operating result of the estimated leverage for the coming years ( Ebitda) levels.
In addition, the creditors have agreed to extend the temporary suspension, which was given on January 16 for the payment of interest on premium bonds, which was then extended until July 17, 2023, and extended until October 16, 2023.
Results presentation
Also, it was agreed Extension of deadline for submission of 2022 results until July 2023.
As a result of the operation, which represents a turning point for the company and the beginning of a new and healthy phase, the group estimates the impact on the accounts of 2022, the investment of existing shareholders, the loss of their participation after the refinancing process is completed.
This depreciation is purely accounting character and chain sales (at constant exchange rates) of over 1,300 million in 2022, 10.4% higher than in 2021, do not represent the firmness or true evolution and resilience of the business.
278 million fixes
Therefore, although the financial year 2022 results would show an accounting loss of € 278 million, the result included both the aforementioned adjustment of the investment of existing shareholders and the higher financial burden of € 37 million from existing shareholders. will be significantly reduced after debt and refinancing.
Excluding these factors, adjusted EBITDA under IFRS16 would be €58 million, which is 18% less than in 2021 as a result of the impact of inflation on business margins.