Solocal bondholders agree to accelerated financial safeguard plan

Chicago, April 23 – Solocal Group announced that 99.8% of the votes at its bondholders’ general meeting were in favor of the accelerated financial safeguard plan, according to a press release.

Implementation of the amendment of the plan still depends on approval of the company’s shareholders at the general meeting scheduled for June.

The company announced on April 12 that it had reached an agreement in principle with industrial player Ycor and the group’s main creditors and shareholders.

Creditors include the main revolving credit facility lenders, bondholders and mini bondholders.

The main terms of the plan include:

• A contribution of €43 million in equity, including a maximum amount of €38 million from Ycor;

• The contribution in kind of all shares issued by Regicom Webformance SAS to the company;

• A partial repayment of existing revolving credit facility debt of €20 million, with part of the proceeds from the equity infusion; and

• A massive reduction in the nominal amount of the company’s existing gross bond debt (including interest) by approximately 85%, with different amortization or conversion profiles depending on the nature of the reinstated debt.

A group of lenders representing 78.6% of the revolving facility, bondholders representing 84% of the bonds and full representation for the mini bonds agreed to the transactions.

After the agreement is implemented, the company will be controlled by Ycor.

More terms

Under the agreement, revolving lenders would have €20 million repaid and the remaining €14 million would be reinstated with amended terms.

Four equal amortization payments would start in March 2025.

Interest would still be in cash, at Euribor plus 850 basis points.

The approximate €177 million of bonds would mostly be converted into equity, but €5 million would be reinstated with amended terms, deeply subordinated and with a perpetual term.

The €19 million of mini bonds would be fully reinstated with amended terms.

Previously reported

The company was fielding two offers for a restructuring.

The company’s debt includes €176,689,767.06 in bonds with interest at Euribor plus 700 basis points (with a 1% Euribor floor) due March 15, 2025 (ISIN: FR0013237484), €18,743,702.88 of mini bonds with interest at Euribor plus 700 bps (with a 1% Euribor floor) due March 15, 2025 (ISIN: FR0013527744) and a revolving credit agreement for €34 million.

Solocal is a French digital marketing company.

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