Transcom - comment

Altor has provided a larger equity injection than we anticipated, with the €50m contribution funding the 15% cash element under the Transcom proposal. Despite the reduced bond size, the Company’s interest coverage is expected to remain tight. The structure is designed to incentivise Altor to pursue an exit within the next twelve months, as the step up in the PIK component in 2027 will erode Altor’s equity value over time. While the transaction gives the sponsor additional runway to complete a sale, the absence of an exit could ultimately leave bondholders exposed.