Bondholders, Santander and ICO rescue Telepizza

Spanish midcap TelepizzaSpanish midcap Telepizza

Telepizza’s bondholders and Santander, its largest creditor bank, yesterday signed an agreement to save the company. According to sources close to the operation reported by the newspaper CincoDías, both the funds and the bank have agreed to assume a write-down of around half of its liabilities, some €400 million , in exchange for taking over 100% of the company. This means that the bondholders will become the new majority shareholders, with Santander taking a minority stake in the capital.

After months of negotiations, the bondholders – captained by the Oak Hill, Blantyre, HIG, Fortress and Treo funds – and the banks have agreed to rescue the company, now renamed Food Delivery Brands. Its current shareholders, led by KKR, along with Artá, Torreal, J Safra Group and Altamar, are the most affected by the deal, as they will lose their entire stake. The group of bondholders will be the majority shareholders, with 75% of the capital. The other 25% will be divided between Santander, which lent €40 million with a guarantee from the ICO during the pandemic, the ICO itself and other financial institutions, yet to be specified.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.