Orchestra Premaman reaches deal to restructure bank lines and bonds

By Caroline Salls

Pittsburgh, June 26 – Orchestra Premaman SA entered a debt restructuring agreement with its financial creditors, according to a Tuesday news release.

Orchestra said the restructuring calls for an extension until July 2020 and, subject to specified conditions, until July 2021 of the majority of the group’s €209.2 million in bank lines.

If the lines are extended to July 2021, the maturity of Orchestra’s €100 million of bond debt will also be extended one year.

Each bondholder will also receive a waiver fee equal to 0.3% of the amount of the bonds held, with a total waiver fee amount of €300,000.

The interest rate for the 2020 bonds will be increased to 5¼% from 4¾%, the rate for the Euro PP 2021 bonds will be increased to 4.531% from 4.031%, and the rate for the Euro PP 2022 bonds will increase to 4.84% from 4.34%.

No later than Nov. 30, 2019, the company will implement a share capital increase with preferential subscription rights for a minimum amount of €28.5 million.

According to the release, majority shareholder Yeled Invest has guaranteed that the capital increase will be subscribed for that amount, including by way of set-off against its current €19 million account receivable.

The restructuring also includes the possibility of Orchestra Premaman raising an additional €30 million in financing with a 23-month maturity.

Orchestra said it entered into a conciliation protocol on June 13 with the group’s bank creditors.

The company will seek approval of that agreement from the Montpellier Commercial Court.

Orchestra also entered into a binding term sheet materializing the agreement with holders of more than 30% of its 2020 bonds and all of its Euro PP 2021 and 2022 bonds.

Chief executive officer Thomas Hamelle said in the release: “This restructuring comes at a key moment for Orchestra. In a context where the distribution and textile markets rapidly evolve, we will be able to invest more in digital and logistics facilities, upgrading and extension of our retail outlets as well as support to our franchisees and affiliates in such evolution.”

Saint-Aunès, France-based Orchestra provides childcare, maternity and children’s fashion products.

© 2015 Prospect News.
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