Latham & Watkins advised the senior secured noteholder committee on the €1.8 billion debt and equity recapitalisation of Selecta, a Swiss headquartered pan-European coffee and vending machine business.
The transaction involved the exchange of all €1.5 billon outstanding senior secured notes into new first lien and second lien debt instruments and new preferred equity instruments, the reinstatement of the €150m RCF and the investment by KKR, the group’s equity sponsor, of €175m by way of a cash funding of €125m and the discharge of €50m outstanding under a liquidity facility made available by KKR in consideration for the issuance of €175m of preferred equity in the group.
The recapitalisation was implemented by means of a scheme of arrangement that was sanctioned by the UK High Court on 27 October 2020 and recognised by the US Courts following a hearing on 30 October 2020.
The Latham team was led by London restructuring and special situations partners Simon Baskerville and Yen Sum, working closely with restructuring and special situations associate Tom Davies, capital markets partners Scott Colwell and James Burnett, banking partner Dan Maze, and private equity partner Beatrice Lo.
