• Sun. Oct 17th, 2021

Codere Shareholders’ Meeting ratifies company restructuring

Byeditorial

May 12, 2021

The extraordinary shareholders’ meeting of Codere SA, held today in first call, ratified by a large majority the signing by the company of the lock-up agreement reached with the creditors of the group and proposed by the Board of Directors. This agreement provides for the injection of up to a further 225 million euros in the form of new bonds and the capitalization of debt up to 367 million euros, corresponding to part of the existing senior guaranteed bonds, placing this debt at levels deemed sustainable once normalized. ‘activities. The residual debt is extended until September 2026 and November 2027. The entry of the new funds will take place through a bridging loan of 100 million euros, of which 30 million euros after the restructuring announcement last April and 70 million euros after having obtained the adhesion of 75% of the bondholders; and up to a further 125 million euros granted through super senior bonds that will be disbursed at the end of the restructuring process which, predictably, will take place at the beginning of the fourth quarter of the year. With this process Codere believes, on the basis of current estimates, that the sustainability of the company is ensured, thanks to the trust of its bondholders in the prospects of the group, in its management and in the more than ten thousand employees who make up the organization. At the peak of this restructuring process, a new parent company will be created through which the creditors of the existing senior covered bonds will have 95% of the share capital and the current shareholders 5%, obtaining warrants that grant them the right to receive up to 15 % in the case of a valuation of more than 220 million euros in a possible liquidity event within 10 years. The company plans, in turn, to request the liquidation of Codere SA, a process that would allow its current shareholders to have shares in the capital of the new parent company or, optionally, an economic compensation that would derive from the sale of a proportional part of their shares.