Adler - comment

Various asset sales: LEG, who already hold the minority share, today announced the acquisition of most of Adler's stake in Back. The price accurately reflects our valuation of the shares. Adler will retain a set of put options to LEG for its remaining 10.1% RETT blocking stake, but did not mention any financial conditions attached to them. In management’s shoes we would exercise the option tomorrow so we can only imagine that there is a hook to it. We understand a full transfer is planned during H125, providing Adler with €219m.

We separately understand that Adler’s sales process is running a little slow and that accounts may be pushing for exclusivity soon to "call the bluff”. So we remain happy with our 1st Lien in the name, but continue to hold the SPV bonds in a barbell strategy to benefit from any value transfer stemming from any refinancing of the company - should it come faster than we expect.