Milbank LLP has advised a group of senior lenders to the Keter Group on the successful completion of a transaction that includes maturity extensions of the Group’s senior and holdco PIK facilities and the provision of €50M liquidity by certain senior lenders in the form of a super senior facility. The Keter Group will shortly launch a strategic sales process to maximize value for all stakeholders, which is expected to generate proceeds to repay the group’s €1.3B senior facilities in the coming months.
The transaction was implemented by way of a consensual amendment and extension of the existing €1.3B senior facilities. Milbank advised the core senior lender group on all aspects of the transaction, which, in addition to the extension of the senior facilities’ maturity, included an enhanced PIK margin uplift during the pendency of the sales process and implementing a mechanism by which, if the sales process is not successful, ownership of the Keter Group is automatically transferred to the senior lenders. The M&A process will be managed by an M&A committee of independent directors.
The transaction garnered the support of all key stakeholders of the Keter Group, including its direct and indirect shareholders, junior stakeholders and an overwhelming majority of the senior lenders. The restructuring was completed on 21 September 2023.
Keter is the innovative global leader in durable consumer lifestyle solutions for, in and around the home under the brands including Keter and Curver.
The Milbank team included partners Kate Colman, Sinjini Saha, Andrej Wolf, Laura Bonamis, Suhrud Mehta and Yushan Ng, special counsels Merih Altay and Alan Rafferty, associates Manpreet Khehra, Roza Vanian, Abbey Dalgleish, Tom Neilson, Jade Du Berry, Rajpreet Lachhar, Yalini Ravi and Marleen Jonckers.
