Atos - comment

Our initial reaction to the four distinct “offer” letters from financial creditors, Bain Capital, EPEI (Kretinsky)/Attestor, and OnePoint/Butler Industries, is slightly reserved.  Summary below, but the common theme, as expected: providers of fresh capital to take the lion's shares of the equity with existing shareholders and to a lesser extent bondholders heavily diluted. 

- Creditors, including bondholders and bank lenders - size is redacted - are happy to work with a potential anchor investor, the Group is kept whole, banks and bonds are pari-passu and all maturities treated equally, providers of new money will be able to elevate their existing debt to 1.5 lien status, smaller debt conversion (c.37%) and near 100% dilution for existing shareholders.

- Bain Capital - Essentially states need more time.  Have previously bid for Digital division, ex Cybersecurity, at an indicative range of €2.4-€2.8bn EV, assuming debt free cash free basis, but given the recent deterioration, unwilling to commit at this stage.  Would consider working as a partner with existing shareholders and/or creditors. 

- EPEI (Kretinsky) and Attestor - €600m of equity to acquire 99% of the equity.  Creditors would have 17c of reinstated debt, subject to some conditions, plus a contingency Instrument based on excess proceeds from the sale of the Cyber security segment. 

- OnePoint/Butler Industries - €350m of equity provided by the Group for a minimum of 35% of the post-restricted equity with David Layani to be the CEO.  A cascade of options for creditors to provide new money, elevating their existing claims if they provide the additional capital.