OHLA - comment
OHLA has promises for the €150m equity rise the banks wanted, so the sticking point in the negotiation points to pricing discussions rather than the banks threatening to walk away. There is still plenty of work to do for OHLA to get this equity raise over the line. The OHLA EGM is on the 21st of October, so we expect a lot of headlines in the coming days. As we said previously, the capital raise depends on the banks extending their guarantee lines (beyond the end of November) and releasing €140m cash collateral. The Amend and Extend operation with the 2026 bondholders is ongoing (new maturity 2030). The two sides are a long way apart (the current coupon is 10.75% (including 5% PIK, OHLA wants 8%, and bondholders want 12%); the gap may be bridged with some form of PIK. We are also pleased to see a permanent CEO is part of the transaction, as governance at OHLA has been poor.