Pfleiderer - comment

Selling Silekol for good value would have been difficult, since over a third of the value would have to come from a pro forma recognition of the Nord investment. So a drop-down transaction (we had previously flagged it) would have been the way to go. SVP inject €25m in form of a new shareholder loan and a new SFA at Silekol raises another €110m to generate €135m of liquidity at Pfleiderer - approx. 5x recent Silekol EBITDA. The liquidity will likely be applied towards the drawn RCF and may have to be kept in the business as long as cash is burning. Bondholders now hold the equity upside in Silekol from Project Nord and Pfleiderer itself, which is generating negative FCF, thus has no debt carrying capacity at all.