The Very Group - comment

Carlyle assumed control of The Very Group in November, following the insolvency of VGL Holdco, the holding company above the group. However, Carlyle was never expected to be a long-term owner. Sky News reports this morning that Carlyle intends to initiate a sale process for the business. This is consistent with our view and the May refinancing, which was incremental rather than transformational.

From a credit perspective, the bonds remain call-constrained and, given the club-style structure of the financing, we do not expect a meaningful trading opportunity to emerge.