OHLA - comment
OHLA appointing Houlihan was necessary, but the bonds will initially trade slightly lower. The entry of an advisor to OHLA was unavoidable as an amend and extend (A&E) may be required; it may have been a condition from both Atitlan and OHLA’s banks. As the bondholder group (via PJT) has refused to consider a haircut, OHLA could not rely on bondholders taking the pain. The OHLA board is considering which cash raise option to support, and Houlihan will also be able to ensure that the preferred solution is sellable to bondholders if necessary for an A&E. The banks will not release any of the €140m cash collateral they hold until the equity raise is complete. Creditors will also prefer a single solution to the OHLA balance sheet.
The €100m Amodio plan has €25m in cash, with a possible €25m from Coapa Larca and €50m from other shareholders. The Amodio plan has a lot of hope placed on OHLA getting cash from asset sales in the door by March 2025. A failure to get other OHLA investors to back the cash raise would raise the probability of an A&E for the bonds. The Amodio family funded their original €87m cash injection (in 2021) with a loan from JPM. We do not know if that has been repaid or amortised.
Conditions on the Atitlan €75m offer added uncertainty about getting the deal over the finish line quickly enough to make the maturity payments. There is speculation that Atitlan is looking to work with another investor to make a bid for OHLA.
https://www.eleconomista.es/infraestructuras-servicios/noticias/12904634/07/24/ohla-se-arma-con-houlihan-lokey-para-negociar-con-los-bonistas-la-reestructuracion-de-su-deuda.html (subscription required)