Plan to deal with debt organised
Bavaria Yachts has announced that Anchorage Advisors, and Oaktree Capital Management who collectively control approximately 95 percent of Bavaria’s ?960 million debt facilities, have signed a binding agreement to restructure the company’s balance sheet.
The restructuring will create an industry leading balance sheet through a capital injection of ?55 million in cash and the write-down of over 90 percent of the senior and junior debt tranches. Anchorage and Oaktree have been working collaboratively with Bain Capital, and look forward to Bain’s continued involvement upon consummation of the agreement, which is subject to regulatory and anti-trust clearance.
Both Anchorage and Oaktree have been lenders to Bavaria for over a year, and support the strategic plan developed by the management team and Bain. Upon completion of the transaction, Bavaria’s new financial strength will enable the company to accelerate new product launches, expand and strengthen its channels of distribution, while continuing to support its existing customers and distributors.