Antolin - comment

The company is speeding towards a refinancing of its 2026 notes after reaching an agreement with its lenders on €530 million debt facilities including a €340 million syndicated loan until June 2029. Lenders have also agreed to pricing at €URIBOR + 250 to 400 bps depending on leverage metrics. The company has agreed to no dividend payments till 2026 and to add four additional guarantors to its senior debt including the 2026 and 2028 Senior Secured Notes. In parallel, it has also sold €100 million of non-core assets (which include a 45% equity stake in its Turkish JV, sale of its trunk trim business and real estate assets) thus meeting 65% of their €150 million divestment target. This creates a great financing backdrop for the 2026 notes but we note that there was no mention of the refinancing of the 2028 Senior Secured Notes. If the 2026 notes are refinanced with a longer dated bond and the 2028 notes are left untouched, it would create an another maturity headache for the company to handle in 2027. Let us hope the company is a better shape then and capital markets remain as bright as the weather on the Costa del Sol.