Sales approaching half a billion euros in 2025 and an operating profit of 70 million euros from 44 million euros to date provide for Frigoglass’s business plan based on a restructuring agreement signed with the group’s bondholders on 6 March. These projections are primarily based on the assumption that the restructuring will rationalize Frigoglass’ operations and that the glass industry will contribute much more in the next period than it does today, accounting for around 66% of the group’s total EBITDA through 2025, and that the commercial refrigeration sector will also recover. after the restart of the Romanian plant in March.

Day by day, more and more details of the agreement with the bondholders are being revealed, both in terms of how the debt will be restructured and in terms of bridge funding for the company, as well as the fate of its assets and contracts with employees. The main points of the agreement are as follows:

a) Notes maturing in 2025 will be reduced by €110 million (42% of the outstanding amount) by a substantial exchange for:

• 85% of New DebtCo’s conditional capital (this is the new corporate entity to be created and into which the shares of Frigoinvest Holdings BV will be transferred) – FHBV, the holding company that owns Frigoglass – and its subsidiaries.

• €150 million bonds maturing in 2025 will be exchanged for restructured bonds at 2% cash and 9% PIYC (Paid in Kind) until and until 31 December 2023 and 3% cash and 8% PIYC from 1 January 2024 year, and then, with a duration of five years. If payment is made entirely in cash, the interest rate will be 1% lower.

The glass industry is expected to contribute much more in the next period than it does today.

b) Participating Noteholders will provide up to €75 million in new Senior Secured Notes upon completion of the transaction to fund the business plan. The new senior secured bonds bear interest at 4% cash and 8% PIYC and have a maturity of three years. Proceeds from the new senior notes will be used to refinance the mezzanine notes and pay accrued interest, to pay costs and fees associated with the transaction, and for general corporate purposes.

c) The company is obliged to sell to third parties the property that housed the Frigoglass factory in Kato Achaia, which was permanently closed in June 2019.

d) Transfer of employment contracts to the new corporate structure to be created. In total, the Frigoglass group, according to the latest published financial report, had 5,129 people as of June 30, 2022.

The business plan is to sell Frigoglass from €473 million in 2022 to €471 million in 2023 and increase to €489 million in 2025, with significant changes in margins and EBITDA expected. Specifically, out of €44 million EBITDA and a 9% margin in 2022, EBITDA is expected to reach €70 million in 2025 with a profit margin of 14%. In fact, glass production margins are projected to reach 28% in 2025, and commercial refrigeration margins are projected to reach 8% from 1% today.

Capital expenditures are projected to increase from 2023 to 2025 for the glass industry (total €46m) due to maintenance and refurbishment of furnaces, while the commercial refrigeration sector is projected to spend €16m in 2023, concerning the reconstruction of the plant in Romania.