Global law firm White & Case LLP has advised the ad hoc group of bondholders, representing more than two-thirds of the outstanding bonds and including some shareholders, on the negotiation and signing of an Agreement in Principle on the terms of the financial restructuring of Solocal Group, a French digital marketing company.
The Agreement in Principle was entered into on April 12, 2024 with Solocal Group, Ycor and a group of lenders representing more than two-thirds of the principal amount of the Revolving Credit Facility (RCF). The main objective is to substantially reduce Solocal Group's indebtedness and secure its liquidity.
The Agreement in Principle, concluded within the framework of the conciliation procedure and the ongoing accelerated financial safeguard plan, provides for a contribution exclusively in equity, including from Ycor through share capital increases with or without maintaining shareholders' preferential subscription rights, and the contribution in kind of all shares issued by Regicom Webformance SAS to Solocal Group. At the date of effective completion of the contemplated share capital increases and issuance of securities there will be a partial repayment of existing RCF debt with part of the proceeds from the equity contributions and a massive reduction in the nominal amount of the Solocal Group's existing gross bond debt (including interest) by approximatively 85 percent, with different amortization or conversion profiles depending on the nature of the reinstated debt.
Following the full implementation of the Agreement in Principle, subject to the fulfillment of conditions precedent, Solocal Group will be controlled by Ycor.
The White & Case team in Paris which advised on the transaction was led by partners Saam Golshani, Hugues Racovski and Alicia Bali and included associate Ophélie Clain.
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