Codere’s Board of Directors ratifies the restructuring of the company

Madrid, May 11, 2021-. The Extraordinary General Shareholders’ Meeting of Codere S.A., held today at first call, has ratified by a large majority the subscription by the company to the lock-up agreement reached with the group’s creditors and proposed by the Board of Directors.

This agreement involves the injection of up to an additional €225 million in the form of new bonds and the capitalization of up to €367 million of debt, corresponding to part of the existing senior secured bonds, bringing this debt to levels considered sustainable once the business is normalized. The maturity of the remaining debt extends to September 2026 and November 2027.

The new funds will be provided through a €100M bridge loan, of which €30M was provided after the restructuring announcement last April and €70M will be provided after 75% of the bondholders have signed up; and up to an additional €125M granted through super senior bonds that will be provided at the closing of the restructuring process, which is expected to take place early in the fourth quarter of the year. 

Based on current estimates, Codere believes that this process ensures the company’s viability, thanks to the confidence of its bondholders in the group’s prospects, its management team and the more than ten thousand employees that make up the organization.

Restructuring of the shareholding and liquidation of the company

With the culmination of this restructuring process, a new head of the group will be created through which the creditors of the existing senior secured bonds will hold 95% of the capital stock and the current shareholders 5%, obtaining warrants entitling them to receive up to 15% of a valuation in excess of €220 million in a possible liquidity event within 10 years. 

The company plans to request the liquidation of Codere S.A., a process that would allow its current shareholders to become shareholders in the capital of the new head of the group or, optionally, an economic compensation resulting from the sale of the proportional part of their shares.

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