Milbank LLP has advised the initial purchasers in connection with the issuance by Frigoglass S.A.I.C.’s (“Frigoglass”) subsidiary Frigoglass Finance B.V. (the “Issuer”) of €260 million 6.875% Senior Secured Notes due 2025 (the “Notes”). The proceeds from the offering of the Notes (the “Offering”) have been, or will be, used (i) to repay certain of Frigoglass’s existing borrowings, including first and second lien facilities and notes issued in connection with Frigoglass’s recapitalization in 2017, (ii) for general corporate purposes and (iii) to pay fees and expenses related to the offering of the Notes.
Frigoglass is a leading international producer of ice-cold merchandises globally and a leading supplier of high-quality glass containers and complementary packaging products in West Africa.
Facing the challenge of adverse macroeconomic conditions in certain of its key geographies, Frigoglass began a process of rationalizing their manufacturing footprint in 2014, followed by a comprehensive operational turnaround plan from 2016 to strengthen the resilience of its business to adverse macroeconomic conditions and increase profitability. Furthermore, in 2016, Frigoglass initiated discussions with its main stakeholders, including certain bank lenders, an ad hoc committee of noteholders of the senior notes issued in 2013 and its largest shareholder, in order to achieve a sustainable capital structure and improve its profitability and cash flow generation. In October 23, 2017, Frigoglass completed its balance sheet recapitalization process, which led to a significant deleveraging of its business. The successful Offering represents Frigoglass’ first capital markets transaction since the recapitalization.
The Milbank team was led by European Leveraged Finance/Capital Markets partner Apostolos Gkoutzinis and counsel Ana Grbec, working closely with associates Aled Knights, Anastasia Kontaxi, Philip Anscombe, Maria Schweinberger and Stephanie Colquhoun.
