Biogroup - comment

BioGroup has launched an A&E for its capital structure, transitioning to an all-senior structure maturing in 2031. The existing Senior Secured Notes will be exchanged at par, but the Senior Notes at Laboratoire Eimer (sub Notes) will be exchanged at 97.5%, albeit will be elevated. The transaction includes 90% consent thresholds, which enable a mandatory exchange for non-participating holders. 

We exited our position earlier this month, as we did not expect an amend-and-extend to launch before completion of the French pricing-regime negotiations later this year. Existing bonds carry relatively low coupons, which will step up under the exchange, and were both trading below the implied exchange price, which provides a strong incentive for holders to participate.