Hengeler Mueller advises Pfleiderer on the conclusion of a restructuring agreement First debt/equity swap of bond under new bond law

07. June 2011

The listed Pfleiderer AG has concluded a framework agreement with its major financial creditors on the financial restructuring of the Pfleiderer Group. The restructuring concept includes a debt waiver in the amount of approximately EUR 380 m and an additional credit facility based on a super senior loan in the amount of EUR 100 m. In addition to this, a capital decrease to approximately 1% of the current share capital is envisaged combined with a capital increase against cash contribution of up to EUR 100 m. Those creditors participating in the debt waiver but not in the capital increase are to subscribe to an option bond. Moreover, it is envisaged to convert the hybrid bond issued in 2007 in the nominal amount of EUR 275 m into shares of Pfleiderer AG. These measures still require the approval of an extraordinary general meeting of Pfleiderer AG as well as a meeting of the hybrid bondholders.

The conversion of the hybrid bond is to be implemented based on a resolution to opt in the new bond law. Pfleiderer AG thus becomes the first issuer using the possibilities of this new law to convert a bond pursuant to a debt/equity swap into equity.

Hengeler Mueller is advising Pfleiderer AG. The Hengeler Mueller team is being led by partners Daniel Weiß (Restructuring and Financing, Frankfurt) and Georg Seyfarth (Corporate, Düsseldorf) and includes partners Andreas Austmann, Hartwin Bungert, Gerd Sassenrath (all Corporate, Düsseldorf), Heinrich Knepper (Financing and Restructuring, Frankfurt), Wolfgang Meyer-Sparenberg (Corporate and Financing, Düsseldorf), Martin Geiger (Securitisation, London), Hendrik Haag (Debt Capital Markets, Frankfurt), Achim Herfs (Equity Capital Markets, Munich), Jan D. Bonhage (Public Law, Berlin), Martin Klein, Matthias Scheifele (both Tax, Frankfurt) and counsel Axel Gehringer (Financing, Frankfurt) as well as associates Bianka Bielecke, Thomas Fräbel, Steffen Hörner, Jürgen Nosky, Jan Penselin, Jesko Kamischke, Gunnar L. Schmüser, Gunther Wagner (all Frankfurt), Tobias de Raet, Thilo Fleck, Arne Lambrecht, Mikolaj Pogorzelski, Martin Ulbrich, Sebastian von Thunen (all Düsseldorf), Marie Söhngen, Carolin Stumm (both Munich) and Maurice Séché (London).