Toilet maker artfully unclogs bondholder backup
29/09/2023 09:16
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Neil Unmack
LONDON, Sept 29 (Reuters Breakingviews) - Embattled
Ideal Standard has struck a $640 mln deal to be bought by
Germany’s Villeroy & Boch. The key was persuading creditors to
accept less than par on 2026 debt. Other struggling companies
could make use of similar financial plumbing.
Full view will be published shortly.
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CONTEXT NEWS
Villeroy & Boch, a German ceramics manufacturer, said on
Sept. 18 that it would buy Belgian bathroom fittings maker Ideal
Standard for 600 million euros, including debt.
The deal was announced in conjunction with a debt exchange,
whereby Ideal Standard creditors agreed to a potential reduction
in the value of their claims, subject to a takeover offer.
Holders of Ideal Standard’s 325 million euros of bonds due
in 2026 exchanged them for securities with similar terms, but
which also include a mandatory call option at 72% of par in the
event of a takeover by the end of 2023.
(Editing by Jeffrey Goldfarb and Streisand Neto)
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