ZURICH (Reuters) – Financial investor KKR <KKR.N> is injecting 125 million euros ($147 million) in additional capital into crisis-hit Swiss snack machine operator Selecta under a debt restructuring agreement.
In addition, outstanding bonds would be converted into securities that would not mature until 2026 in a move that will significantly reduce the company’s high level of indebtedness, Selecta said (https://www.selecta.com/dam/jcr:a36ed61a-eb03-49b8-862a-3f38075d0dae/Selecta%20Group%20-%20Lock-Up%20Agreement%20Press%20Release.pdf) in a statement released late on Tuesday.
Major shareholder KKR, creditor banks and a substantial portion of the bondholders had agreed to the recapitalisation.
“These actions ensure we are now on a very stable footing and allow us to deliver on our strategic business plan as we traverse the post-COVID-19 operating landscape,” Chairman Joe Plumeri said in the statement.
Selecta, with more than 10,000 employees, has been badly hit by the coronavirus crisis in the past six months. Its vending machines offer chocolate bars, cold drinks, snacks and coffee in offices, train stations and other public places throughout Europe.
Because many people stayed at home during the lockdown, the company’s sales collapsed.
Reuters had reported in May that Selecta was heading for a debt restructuring.
(Reporting by Oliver Hirt, Writing by Michael Shields)