Milbank Advises an Ad Hoc Group of Senior Lenders on the Recapitalization of the Accell Group

Milbank LLP has advised a group of senior lenders on the successful recapitalization of the KKR-controlled Accell Group, a market-leading producer of bicycles.

The Accell Group’s recapitalization involved the reduction of its previous c. €1.5 billion liabilities, of which €885 million comprised the “senior facilities.” The recapitalization saw maturities extended to 2030 and an injection of €235 million of extra liquidity via three new facilities.

The restructuring of the senior facilities was implemented by way of a UK scheme of arrangement, under which over 80% of the senior facilities lenders supported the scheme. All senior lenders received a portion of their existing commitments refinanced into a mixture of senior and junior debt tranches, with the option to receive equity-linked instruments. All senior lenders also had the option to participate in a new super senior facility. The Accell Group’s other primary liabilities were amended consensually as part of the overall transaction.

The Milbank team was able to draw on its significant cross-jurisdictional expertise in restructuring, leveraged finance, tax and corporate to bring this complex cross-border transaction to a successful conclusion for its clients and the Accell Group.

The Milbank team was led by partner Sinjini Saha with Laura Bonamis, Alan Rafferty, Marlene Ruf, Tristram Gargent, Barbara Mayer-Trautmann and Mathias Eisen. The team included special counsel Suzanne Thomson and Peetra Anderson-Figueroa, associates Damilola Odetola, Joseph Clarke, Patrick Kratzenstein, Alex Taylor, Natasha Cacela, Irene Vazquez Scortti, Susanne Baier and Freddy Pilkington, and trainees Tom Shurman, Eamon MacDonald and Richi Kidiata.