Lenders to UK vehicle leasing group Zenith are close to finalising a deal, with the transaction seen as imminent and not expected to involve a haircut for bondholders, according to 9fin sources.
One source told 9fin that creditors are working under a lender cooperation agreement and, while the outcome is “not going to be Armageddon”, it is unlikely to be favourable for bondholders.
Latham & Watkins, Milbank, and Jefferies are working on the transaction, sources confirmed. 9fin reported almost two years ago that a group of bondholders had appointed Jefferies and Milbank to prepare for refinancing talks with the company and its sponsor Bridgepoint.
Since the start of the year, Zenith’s €475m senior secured notes due 2027 have traded down from the mid-to-low 70s , reflecting investor caution around the company’s capital structure and refinancing prospects.
While details of the transaction remain unclear, one source suggested a liability management exercise that could involve maturity extensions and new money, rather than a debt reduction.
Given the group’s tight liquidity position and upcoming 2027 maturities on both the bonds and its revolving credit facility, an amend-and-extend style deal could provide near-term runway while preserving optionality for a broader refinancing...
