Adler - comment

Adler have secured commitments for the refinancing of the 1L PIK loan via a new €1.2bn 8.25% (1% OID) loan, a transaction that is to save the company nearly €50m in annual PIK interest. The new loan is to be issued out of an orphan vehicle, for reasons we do not yet understand. We imagine the remainder is to be paid in cash, principally from the proceeds of Brack. The transaction is to be completed by the end of January, which is of course earlier than we had hoped for our position in the 1L. If we do not see a measurable impact on the 3L SPV bonds, we will be exiting that position in due course.