Frigoglass skips payment on secured notes due to lock-up agreement

By Mary-Katherine Stinson

Lexington, Ky., Feb. 2 – Frigoglass Finance BV did not make the coupon payment due Feb. 1 on its €260 million 6 7/8% senior secured notes due 2025 (ISINs: XS2114234987, XS2114234714) due to the expected completion of a recapitalization transaction, according to a notice.

The company stated it does not expect to make the current payment or make any payment at the expiration of the grace period in order to preserve liquidity.

The issuer, together with its direct parent Frigoinvest Holdings BV, executed a lock-up agreement with certain holders of the notes that comprised the noteholder committee in which the parties agreed to support the implementation of the recapitalization transaction.

Under the amended terms of the lock-up agreement and for its duration, the noteholder committee has agreed not to exercise any rights against the group because of the non-payment of the Feb. 1 notes coupon.

The agreement has been amended to extend the implementation period for the recapitalization transaction to March 1, which is currently the expected date for its completion.

The notice also stated that all remaining noteholders will be asked to agree to the lock-up agreement.

Frigoglass is an Athens-based supplier of beverage coolers and glass packaging.

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