Shearman And Sterling

News October 23, 2017

Shearman & Sterling Advises Frigoglass on the Completion of Its Restructuring

Shearman & Sterling advised the Frigoglass group, a global leader in the Ice Cold Merchandisers (ICM) market, on completing the restructuring of its existing indebtedness, which included €250 million 8.25 percent senior notes due 2018 issued by Frigoglass Finance (the "Notes") and over €80 million of existing bank debt across eight facilities agreements.

This final phase of the restructuring of Frigoglass' existing indebtedness involved implementing a debt-for-equity swap and discount for the existing creditors and the entry into new first and second lien indebtedness to refinance existing indebtedness and provide new liquidity to the Frigoglass group. A Greek law rights issue was also required to implement the additional equity contribution by the company's largest shareholder.

This latest stage of the restructuring followed a change of the issuer's center of main interests from the Netherlands to the United Kingdom, a consent solicitation to amend the governing law of the indenture governing the Notes, and a scheme of arrangement regarding the Notes approved by the High Court of England & Wales.

Among the key benefits to the group is significant deleveraging, including reducing the gross indebtedness by approximately €138 million, improved liquidity for the group with an additional €70 million to fund its business needs as well as restructuring-related expenses, a reduction in interest cost and the extension of the maturity of the group’s existing indebtedness for around 4.5 years.

The Shearman & Sterling team included partners Marwa Elborai (London-Capital Markets), Caroline Leeds Ruby, James Duncan (all London- Finance), Jo Rickard (London-Litigation), Simon Letherman (London-Tax) and Thomas Donegan (London-Financial Institutions & Advisory); Of Counsel Clifford Atkins (London-Finance); counsel Jonathan Handyside (London-Capital Markets) and Leona McManus (London-Finance); and associates Philip Stopford, Tom Berisford, Ellaine Gelman, Charlie Marmion, Joelle Wong, Brittany Roger, Michele Smith, Camilla Hunter, Miles Muirhead (all London-Finance), Carla Russo, Teresa Mendez Florez, Iakovos Anagnostopoulos, Elena Dzhurova, Evangelia Andronikou, WonJu Sul, Igancio Salas (all London-Capital Markets),Gillian O'Regan (London–Litigation), Lois Howarth and Sarah Moir-Porteous (both London-Tax) and Inyoung Song (London Financial Institutions & Advisory).