Cerba - comment

With the senior debt locked up and the company having entered a mandat ad hoc procedure, the Q1 numbers are irrelevant. There were numerous questions on volume and pricing momentum during the quarter, but these just served to fill time on the call. The reality is that the French state, via the NHS, has begun discussions with industry participants where pricing, volumes and potential further regulatory measures are all on the table. Both the mandat ad hoc process and investors are waiting for clarity from these discussions, and the Independent Business Review is expected to start once the French state provides visibility.

For completeness, revenue and EBITDA were flat, while cash flow improved on better working capital management. The company has already drawn €70m of the €100m Incremental Facility Note provided by the sponsor and ranking pari passu with the senior secured debt. Leverage remains elevated at 8.3x on a senior basis or 9.3x including the subs, even after EBITDA adjustments for synergies and remediation plans, rising to 10.3x on an unadjusted senior leverage basis.