Consolidated Energy - comment

To refinance the $227m May 2027 SUN, CONSEN will have to raise Secured debt, either by increasing its TLB or issuing SSNs. A group of TL B and SSN creditors talking to the company about funding makes sense. Any Secured issuance would elevate the 2027 SUN in the capital structure and dilute the existing TL B. The 2028/2031 SUNs will be layered by this new issuance, but issuing unsecured debt would be prohibitively expensive right now. We have been sceptical that the $250m loan to Proman would be repaid and expected secured debt would be issued. Dealing directly with willing subscribers to that debt is natural. Other SUN holders (again, the size of the group is not public) have appointed advisors as they will want to protect their position. Our expectation is for a new deal, not a debt restructuring, and we still see debt as being covered by the value of the assets.

- Source                                         Debtwire

- SUN/TLB Advisors                    Gibson Dunn/PJT

- SUN Holders                               Houlihan Lokey/Paul Weiss

- Company                                     Rothschild