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.