Priming pioneer Selecta proposes bondholder-friendly restructuring

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By Owen Sanderson
09 Sep 2020

KKR-owned vending machine company Selecta was one of the first companies to have its owner inject super-senior ‘priming’ debt once the Covid crisis hit, pushing bondholders down the capital structure. But in its restructuring package laid out on Tuesday, KKR reversed this aggressive move, offering a creditor-friendly proposal that sent the bonds up 11 points.

As sponsor-owned companies reacted to the coronavirus crisis, the sudden stop of businesses and the closure of markets in March and April, high yield bondholders began to worry about the possibility of being ‘primed’.

Companies were desperate to raise liquidity by any means necessary, and the cheapest option ...

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