Food Delivery Brands, the restaurant group that manages Telepizza and Pizza Hut in Spain, has reached an agreement with its creditors and shareholders and has signed an agreement to refinance its debt within the framework of its strategy to boost the business and its growth future. The signing of this agreement, which entails a reduction of close to 240 million euros in debt and an extension of the expected repayment terms until 2028, also includes an injection of 71 million euros, as reported by the company in a fact relevant to the CNMV and has advanced Five days.
The final terms of said operation, subject to a judicial formalization process that will foreseeably conclude in the second half of this year, and whose framework agreement was signed last January, have the support of a group of senior bondholders Group guarantees that represent more than 80% of the total.
After months of tug of war, the bondholders – led by the Oak Hill, Blantyre, HIG, Fortress and Treo funds – and the banks have smoked the pipe of peace with the company, now renamed Food Delivery Brands, and its current shareholders. , led by KKR, together with Artá, Torreal, J Safra Group and Altamar. These are the most affected by the agreement, since they lose their participation completely. The group of bondholders will be the majority shareholders, with 75% of the capital. The other 25% will be distributed between Santander, the Official Credit Institute (ICO) and other financial entities, still to be specified. The new shareholders have injected new funds worth 31 million euros to guarantee the liquidity of the group while all legal steps are formalized.
This financial support could be extended to around 60 million at the end of the process, a sign of the trust and commitment of the bondholders to the company and the business. To this figure is added, in addition, an injection of the current shareholders for a value of 11 million once the judicial approval corresponding to the process has been obtained. The agreement signed for the restructuring of the debt implies the capitalization of a significant part of the current debt of the group, approximately 50%, with a reduction of this close to 240 million euros, and an extension of the expected repayment terms until 2028, which will make it possible to place the estimated leverage for the coming years at levels of x4 gross operating result (Ebitda). Additionally, the creditors have agreed to extend the temporary suspension granted on January 16 on the payment of interest on the senior bonds, maturing on that date and on July 17, 2023, which is extended until October 16. of 2023.
In addition, an extension of the deadline for the presentation of the results from 2022 to July 2023 has been agreed. As a result of the operation, which represents a turning point and the beginning of a new and healthy stage for the company, the group will reflect in their accounts corresponding to the financial year 2022 an accounting impairment of 232.2 million euros corresponding to the adjustment of the value of the investment of the current shareholders, anticipating the effect of the loss of their participation once the refinancing process is concluded. “This depreciation is purely accounting in nature and is not representative of the solidity or the real evolution and resistance of the business, whose 2022 chain sales were above 1,300 million (at constant exchange rates), 10.4 % higher than those of 2021″, as reported by the company in its relevant event.
The group has specified that although the results for the 2022 financial year will show accounting losses amounting to 278 million euros, said result includes both the aforementioned adjustment of the investment of the current shareholders and the high financial burden, amounting to 37 million euros, derived from the current debt, and which will be substantially reduced after the refinancing. Excluding these factors, adjusted Ebitda under IFRS16 would amount to 58 million euros, 18% less than in 2021, as a result of the effect of inflation on business margins.
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