Standard Profil - comment

Standard Profil have announced the launch of a lock-up agreement with an ad hoc group of bondholders, accounting for 65% of the Notes. Other bondholders are encouraged to join the group and will receive 0.5% if they accede to the agreement by the 16th July. 

As part of the proposal, bondholders will have €83m (30%) of the bonds reinstated, with the balance written off. Existing bondholders have the right to participate in the New Super Senior Facility, which will refinance the bridge facility and the RCF. New Money providers will receive a 2.5% upfront fee and 90% of the restructured equity. Reinstated bondholders will receive 4% of the equity. The backstop providers receive the balance of the equity. 

Given the incentives of the proposal, we will be participating in the new money facility.