Atalian - comment

The bondholders are finally taking over Atalian. We see the package as worth around 47c/€, and with the leverage at 4.6x, the reinstated debt should be valued around par. The Ad Hoc group of bondholders represents 60% of the debt; they will need to get 90% on board to bind any minority holders, but we expect this to be achieved, given the alternative and where the bonds have traded. The EBITDA levels indicate margin pressure in France due to wage increases that Atalian has been unable to pass on to clients. There is potential upside over time as cleaning company multiples can reach 10x – 11x, once the distressed tag falls away. There is a further €40m of liquidity facilities available from the Ad Hoc group. Early Bird accession to the agreement is 16th June, with a backstop for the deal (which could be extended) of 30 June.

We are updating our model.

LTM EBITDA (to March 26) is c€65m, using a 6.5x multiple, we get an EV of €425m. Super Senior = €100m (1.5x), SSN (3.1x) => total leverage is 4.6x. That leaves equity of €125m. €918m of debt is being exchanged, which gives us around 47c/€.

Super SSN €100m - €140m Cash Coupon of 8%, OID 5%, Maturity June 2031.

Reinstated SSNs €200m 7.5% PIK (initially).

https://atalian.com/wp-content/uploads/2026/06/20260601-market-update-PR-re-Agreement-vEN.pdf