Welcome Break, a U.K. motorway services company that is attempting to refinance its ailing whole business securitization, has improved its offer to bondholders, according to investors and ratings agency officials. A revised proposal offers senior note-holders 92.5 pence on the pound and junior note-holders 42.5 pence, up from the initial offer of 84 pence and 37.5 pence (BW, 6/16). One investor says Welcome Break has hinted it is willing to offer 95 pence to senior note-holders and that by and large investors would be comfortable with that offer.
Last month, Welcome Break proposed a sale and lease-back deal to investors that would pay down part of the bonds outstanding in its whole business securitization.
Once bondholders accept an offer and the refinancing is completed, the company should be in better financial shape. The investor says he is fairly comfortable retaining a position in Welcome Break paper after the restructuring.
