“Simply put, a takeover bid will involve a degree of deleveraging, which is a positive for the B notes. And if no bid happens, the company will pursue alternative methods to deleveraging, either rights issue or more likely an equitisation of the B notes. That’s when the differing motivations of the B note holders will become apparent,” Sarria said.
Read MoreIndependent buy-side desk Sarria is looking to bring together a group of Lowell bondholders and additional funds and structure a refinancing plan that it aims to take to the UK-headquartered debt purchaser, according to two sources familiar with the situation. The initiative was started by Sarria together with a sizeable client, with the aim of relaunching the refinancing process that stalled after talks with a group of wall-crossed funds broke down in July.
Read More“The CABB business is resilient in this kind of COVID environment and there is revenue visibility on contracts. The end-markets are mostly in the relatively stable agrochemical sector, with the remainder of the exposure also very diversified,” Sarria noted.
Read MoreWolfgang Felix, head of Sarria, said: “Everyone is trying to interpret what Hony does next. There are a few options open to them now. The maturity of the debt in 2021 is as good as tomorrow in terms of how fast PizzaExpress is going to turn round.”
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