Fedrigoni - comment

Fedrigoni is raising a new like-for-like bond to replace the 2030s. The new FRN has a covenant package aligned with that of the 2031s. On the call, management has been highlighting the strong performance of its collectables business, a segment we are slightly uneasy about (although entirely ungrounded - we are merely concerned the performance may be a World Cup sensation). The topco PIK Toggle situation remains as before; a Bain/BC Partners representative took to the microphone and assured that "We would not force the OpCo into a negative free cash flow position to extend the maturities of the HoldCo." We could have imagined a stronger statement, or even a change of terms up top, but apparently it's not required to get the deal away.