Alcentra sold a €5m piece of Alloheim’s €500m E+350bps term loan B maturing in 2025 with the loan trading with a cover of 86.56, according two market participants. The piece was part of a BWIC that launched last week (on 27 September 2023), after one of their CLOs was called, as reported.

The trade comes as restructuring advisors have been increasingly monitoring the German care home provider which has been suffering from staff shortages and rising costs. It has to address over €700m of debt coming due by February 2025 and almost €900m by February 2026, with a net leverage of 6.1x.

“It’s the hottest name on advisors watchlists”, said one German legal advisor.

Banks were prepping an A&E of the TLB back in January this year, however lenders felt leverage was too high to do a straight A&E, as reported. The group’s sponsor Nordic Capital bought the company in 2018.

A financial advisor said “Nordic Capital is in denial. They will try to do a refi or push to do an A&E without any issue”. The advisor said he has been talking to both first lien and second lien lenders.