IFR International - 21.07.2018

LOANS LEVERAGED LOANS

DUEûTOûCONCERNSûFROMûTHEû!USTRALIANû
#OMPETITIONûANDû#ONSUMERû
#OMMISSIONûTHATûITûWOULDûHURTû
COMPETITIONûINûTHEûSECTORû"AINûHADû
ACQUIREDû#AMPû!USTRALIAûTHROUGHûAû
LEVERAGEDûBUYOUTûLASTûYEAR
4HEûlNANCINGûCOMPRISEDûAû!Mû
lVE
YEARûlRST
LIENûTERMûLOANûAû!Mû
SIX
YEARûSECOND
LIENûTERMûLOANûANDûAû
!MûlVE
YEARûlRST
LIENûREVOLVERû4HEû
MARGINûFORûTHEûlRST
LIENûTRANCHESûWASû
AROUNDûPûOVERû""39ûWITHûANû/)$ûOFû
ûWHILEûTHEûMARGINûOFûTHEûSECOND
LIENû
NOTEûWASûINûTHEûMID
Sû

TRIO UNDERWRITES INVESTA BUYOUT LOAN

4HREEûBANKSûAREûUNDERWRITINGûAû!BNû
53BN ûlVE
YEARûLOANûBACKINGûPRIVATEû
EQUITYûGIANTû"LACKSTONEû'ROUPSû
LEVERAGEDûBUYOUTûOFûINVESTA OFFICE FUND
CitigroupûDeutsche Bank and National Australia
BankûAREûTHEûMANDATEDûLEADûARRANGERSûANDû
BOOKRUNNERSûOFûTHEûlNANCING
4HEûLEADSûAREûSOUNDINGûOUTûOTHERû
BANKSûTOûJOINûASû-,!"SûWITHûMINIMUMû
TICKETSûOFû!MûWITHûAûULYûû
DEADLINEûFORûRESPONSES
4HEûLOANûPAYSûAûMARGINûOFûAROUNDû
BPûOVERû""39
"LACKSTONEûANNOUNCEDûITSû!BNû
BIDûFORû)/&ûINûLATEû-AYûWITHûBOTHû
COMPANIESûENTERINGûINTOûAûSCHEMEû
IMPLEMENTATIONûAGREEMENTûONûUNEû
4HEûDIRECTORSûOFû)/&SûMANAGERû)NVESTAû
,ISTEDû&UNDSû-ANAGEMENTûUNANIMOUSLYû
RECOMMENDEDûTHEûOFFERûWHICHûEQUATESûTOûAû
DISTRIBUTION
ADJUSTEDûPRICEûOFû!ûPERûUNIT
4HEûOFFERûNEEDSûAPPROVALûFROMû)/&Sû
SHAREHOLDERSûBUTûISûEXPECTEDûTOûFACEû
SOMEûRESISTANCEûAFTERûTHEûCOMPANYû
BOOKEDûGAINSûOFû!MûORûûINûITSû
PORTFOLIOûINûLATEû*UNEû!SûAûRESULTûOFûTHEû
PORTFOLIOûGAINSû)/&SûNETûTANGIBLEûASSETSû
WILLûRISEûTOû!ûPERûUNITûCOMPAREDû
WITHû!ûATûTHEûENDûOFû
"LACKSTONESûUNSOLICITEDûANDûNON
BINDINGûOFFERûCOMESûTWOûYEARSûAFTERû)/&û

SHAREHOLDERSûREJECTEDûAû!BNûBIDûFROMû

!USTRALIANûlRMû$EXUS

)/&ûISûONEûOFû!USTRALIASûLARGESTûOWNERSû

ANDûMANAGERSûOFûINSTITUTIONAL

GRADEû

OFlCEûREALûESTATE

)Nû-AYû"LACKSTONEûSTRUCKûAû.:Mû

53M    ûDEALûTOûBUYûANûOFlCEûPORTFOLIOû

INû!UCKLANDû.EWû:EALANDûWHICHûWASûCO

HELDûBYû'OODMANû0ROPERTYû4RUSTûANDû

3INGAPOREANûINVESTORû')#

RESTRUCTURING

EUROPE/MIDDLE EAST/

AFRICA

STEINHOFF ENTERS LOCK-UP

AGREEMENT

3OUTHû!FRICANûRETAILERûSTEINHOFF has

OFlCIALLYûENTEREDûINTOûAûLOCK

UPûAGREEMENTû

WITHûTHEûCREDITORSûOFû3TEINHOFFû%UROPEû

3%!'   û3TEINHOFFû&INANCEû(OLDINGû

&INANCEû(OLDING    ûANDû3TRIPESû53û(OLDINGû

353()  ûREGARDINGûAûlNANCIALûRESTRUCTURINGû

OFûTHEûDEBTûRELATEDûTOûTHESEûENTITIES

3TEINHOFFûISûlGHTINGûFORûSURVIVALûAFTERû

REVEALINGûMULTI

BILLIONûEUROûHOLESûINûITSû

BALANCEûSHEETûTHATûWIPEDûOUTûMOREûTHANû

ûOFûITSûMARKETûVALUEûANDûFORCEDûITûTOû

SELLûASSETSûTOûFUNDûWORKINGûCAPITAL

3TEINHOFFûAIMSûTOûIMPLEMENTûTHEû

RESTRUCTURINGûWITHINûTHREEûMONTHSûANDû

THEûTERMSûOFûTHEûRESTRUCTURINGû

ûASûSETûOUTû

UNDERûTHEûLOCK

UPûAGREEMENTû

ûWILLûREMAINû

INûPLACEûFORûTHREEûYEARSûUNTILû$ECEMBERûû

ûSUBJECTûTOûANYûEXTENSION

5NDERûTHEûTERMSûOFûTHEûDEALûTHEûDEBTû

WILLûBEûREINSTATEDûATûPARûBUTûCONVERTEDû

INTOûAûPAYMENTûINûKINDû0)+ ûLOANûPAYINGû

ûCAPITALISINGûTWICEûAûYEARûBUTûONLYû

PAIDûOUTûWHENûTHEûLOANûMATURESû4HISû

GIVESûTHEûlRMSûSUBSIDIARIESûTHREEûYEARSû

OFûBREATHINGûSPACEûWITHOUTûDEBTû

REPAYMENTSûPAVINGûTHEûWAYûFORûTHEû

COMPANYûTOûRESTRUCTUREûõBNûOFûDEBT

3OMEûOFûTHEûDEBTûWILLûALSOûBEûCONVERTEDû

INTOûSECUREDûDEBTûGIVINGûSECURITYûTHATûITû

WOULDûBEûlRSTûTOûBEûPAIDûSHOULDû3TEINHOFFû

lLEûFORûBANKRUPTCY

#REDITORSûHAVEûALSOûSUCCEEDEDûINû

PUSHINGûTHOROUGHûCORPORATEûGOVERNMENTû

CHANGESû.EWûHEADSûHAVEûBEENûBROUGHTû

INûTOûRUNûAûNEWûINTERMEDIATEûHOLDINGû

COMPANYûCREATEDûINûPARTûTOûOVERSEEû

3TEINHOFFSûLITIGATIONûASûWELLûASûPLANNEDû

ASSETûSALES

4HEûGROUPSû0EPCOûUNITûISûSEENûASûONEû

OFûTHEûNAMESûNEXTûINûLINEûFORûDIVESTMENTû

BUTûAûSALEûPROCESSûISûSTILLûMONTHSûAWAYû

ANDûNOûSELL

SIDEûADVISERûHASûSOûFARûBEENû

APPOINTEDûAûSOURCEûCLOSEûTOûTHEûMATTERû

TOLDû2EUTERS

4HEûCOMPANYûNEEDEDûTHEûSUPPORTûOFû

ûOFûCREDITORSûTOûIMPLEMENTûTHEû

LOCK

UPûAGREEMENTû!NYûCREDITORSûOFû

3%!'û353()ûANDORû&INANCEû(OLDINGûTHATû

HAVEûNOTûYETûSIGNEDûUPûTOûTHEûAGREEMENTû

CANûSTILLûDOûSOûANDûWILLûSTILLûRECEIVEûAû

LOCK

UPûFEEûBUTûNOTûTHEûEARLY

BIRDûFEEû

WHICHûOFFEREDûPREFERENTIALûTERMS

3TEINHOFFûALSOûANNOUNCEDûTHATû

APPROXIMATELYûûOFûLENDERSûTOû

(EMISPHEREû)NTERNATIONALû0ROPERTIESûnû

WHICHûHOLDSûABOUTûûPROPERTYûASSETSû



ûHAVEûAGREEDûTOûTHEûTERMSûOFûTHEûDEBTû

RESTRUCTURINGûSUBJECTûTOûlNALû

DOCUMENTATIONûBEINGûAGREEDû

(EMISPHEREûNOWûNEEDSûTOûNEGOTIATEûWITHû

ITSûLENDERSûTHEûTERMSûOFûAûLOCK

UPû

AGREEMENTûREGARDINGûTHEû

IMPLEMENTATIONûOFûTHATûRESTRUCTURING

)Nû!PRILûAûREALûESTATEûSPECIALISTûCUTûTHEû

VALUATIONûOFûTHEûPORTFOLIOûTOûõBNûFROMû

3TEINHOFFSûVALUEûOFûõBN

3TEINHOFFûWHICHûHASûMOREûTHANûû

RETAILûBRANDSûINCLUDINGû#ONFORAMAû

0OUNDLANDûANDû-ATTRESSû&IRMûISûlGHTINGû

FORûSURVIVALûAFTERûDISCOVERINGûACCOUNTINGû

IRREGULARITIESûLASTû$ECEMBERûTHATû

TRIGGEREDûANûûSLIDEûINûITSûSHAREûPRICEû

ANDûAûRAFTûOFûCHANGESûINûITSûBOARDROOM

If your company has been singled out for praise by one of IFR’s

independent journalists, a high quality reproduction of the article will

make a valuable addition to your marketing collateral.

For more information on the various advertising and sponsorship

opportunities available within IFR, email: cmi.advertising:@tr.com

Make the most of your

success stories