Q-Cells SE says it has achieved an agreement in principle on the restructuring of three outstanding convertible bonds, through a single transaction. The company announced last month that it would pursue a financial restructuring through this method.
According to Q-Cells, major bondholders of the 2012, 2014 and 2015 bonds have reached a mutually beneficial agreement that they believe will create maximum value for all bondholders and the company by eliminating the uncertainty and risk inherent in a two-step process.Â
The agreement comprises the following key elements: a cash payment of 20 million euros to the 2012 bondholders payable upon the successful consummation of the financial restructuring; the remaining outstanding principal plus any accrued and unpaid interest of the 2012 bonds, following the cash payment; and an additional pari passu cash payment to the 2012, 2014 and 2015 bondholders upon the successful consummation of the financial restructuring if Q-Cells is successful in the sale of any non-core assets and retains robust future liquidity post any additional cash payment.
The implementation of the agreement is subject to the approval of the bondholders, the shareholders of Q-Cells SE and the involved authorities.
