All,

Please refer to our unchanged analysis here.

The format of the OHL restructuring is generally in line with what we previously envisaged, including a debt haircut and a capital increase. As we have previously stated, we have been biased bullish on the bonds for some time, but we have been unable to go long due to the severe illiquidity during the past 6 months, the result of the ongoing restructuring negotiations. However, our knowledge and current work on OHL leaves us positioned to react quickly once the new instruments start trading. This could happen as early as May, according to the company’s presentation (see below).

OHL has finally reached a restructuring agreement. Under this agreement, the Amodios will inject a committed EUR37m in equity while Tyrus capital commits another EUR5m. Half of the amount outstanding under the bonds will be extended to March 2025 and the other half to 2026, for a maximum total of EUR488.3m, which represents an 18% haircut.

The agreement comprises 57.3% of the total amount under the notes, including Beach Point Capital Management LP, Marathon Asset Management, Melqart Asset Management (UK) Ltd, Sand Grove Capital Management LLP and Searchlight Opportunities Fund GP. The Noteholders who are not yet part of the Lock-Up agreement will be invited to join it.

The transaction will be implemented via a UK Scheme of Arrangement. We are trying to obtain the more detailed documents soon, but in the meantime, noteholders are to contact Lucid for further information.

The company also published a Cleansing Presentation where it highlights the progress made to date, its general direction of the future, legal disputes, and the restructuring plan.

Feel free to reach out if you would like to exchange ideas on the name.

Juliano
___________________
Juliano Torii
E: jtorii@sarria.co.uk
M: +44 794 73 56 163 (preferred)

T: +44 203 744 7055www.sarria.co.uk

OHL - Debt restructuring agreement reached