Takko - comment

A news article yesterday has claimed that Apax are asking Takko’s LC and TLB providers to extend maturity beyond May 2023 and that this would run counter to Silverpoint’s plans, which were not further specified. We have previously written about the likely extension of these lines - at least by close to six months. While we have not confirmed our thoughts with Silverpoint, we doubt that this extension materially impacts any plans. In the current environment, and as long as the retailer has sufficient liquidity, it is probably good practice for all parties to extend and establish a better basis for negotiation. Even if that negotiation looks clear-cut when the bonds mature in November 2023.