Aggregate consent solicitation breaks silence; but release reveals some worrying implications
- Emmet Mc Nally
- +Bianca Boorer
- + 1 more
After months of virtual silence, Aggregate Holdings announced today is set to launch a consent solicitation for its €250m 5.5% 2024 SUNs and its €600m 6.875% 2025 SUNs. The troubled German real estate company is seeking approval to uplift and defer coupons and relax covenants.
For the 2025s, the proposal envisages coupon payments being deferred to maturity. The coupon would be increased by 2.75% percentage points to 9.625%. The 65% Loan-To-Value (LTV) maintenance covenant and the interest coverage covenant would be removed. Lastly, the definition of a material subsidiary would be changed to 20% of total assets from 10% at present.