Konecta Proposes Capitalisation of 70% of Syndicated Debt

✦ Meridian Analysis

Konecta, the Spanish call‑centre specialist owned by British private‑equity firm ICG, is in the early stages of a restructuring after missing a €44 million interest payment on its €1.145 billion syndicated facility. The company has floated a proposal to capitalise roughly 70 % of that debt – about €800 million – by converting it into equity, which would hand ownership of the business to the creditor group and dilute ICG’s stake. The remaining 30 % would stay as a hybrid instrument paying a modest €0.25 percent cash coupon and Euribor + 525 basis points in kind (PIK), meaning interest would be added to principal rather than paid out. The facility comprises a €945 million term loan maturing in 2029 and a €200 million revolving credit line; an additional €250 million of bilateral and working‑capital facilities are excluded from the plan. Creditors leading the negotiations include Benefit Street Partners, ICG Credit and Invesco, with JPMorgan, BNPParibas, Crédit Agricole, Deutsche Bank, Santander and NatWest also represented. Houlihan Lokey has advised Konecta since July, while PJTPartners advises the creditor steering committee formed in late September, and the parties have until 18 December to reach a deal without invoking default remedies. Konecta’s 2025 turnover of €2 billion and EBITDA of €283 million are being eroded by cash‑burn from technology investments. What remains undisclosed are the exact equity percentage the creditors would receive, the valuation underpinning the conversion and any additional covenants that may accompany the new capital structure. Details on the final financing package, the consent process with minority shareholders and the timeline for court or regulator sign‑off will be critical to watch as the negotiations progress.

The Meridian Weekly