Orpea SA - ORRRY STOCK NEWS

ORPEA S.A. has initiated an accelerated safeguard procedure in the Commercial Court of Nanterre, allowing a restructuring plan over an initial observation period of two months. This may be extended by two additional months, not exceeding four months total. This step aims to execute a financial restructuring plan following a lock-up agreement with significant creditors, involving approximately EUR 1.9 billion in unsecured debt and an additional financing of EUR 600 million. However, the anticipated capital increases will lead to substantial shareholder dilution, with prices significantly lower than current market values.

ORPEA S.A. has finalized a financing agreement with major banking partners, including BNP Paribas and Société Générale, aimed at supporting its restructuring plan through an accelerated safeguard proceeding. The €600 million financing includes three facilities: €400 million revolving, €100 million, and another €100 million, designated for corporate purposes and related expenses. Key terms include a 2.00% annual margin and a final maturity date for Facility D1 set for June 30, 2026. This agreement follows ORPEA's previous announcement in March 2023 and marks a significant step in its financial and operational restructuring.

ORPEA S.A. announced that as of March 10, 2023, approximately 51% of its unsecured financial creditors, totaling around 1.9 billion euros, have adhered to a lock-up agreement stemming from a financial restructuring process initiated on February 14, 2023. The company plans to file a request for an accelerated safeguard proceeding before the Commercial Court of Nanterre to advance its restructuring plan. ORPEA operates in 22 countries with a focus on elderly care, rehabilitation, and mental health services, employing over 72,000 staff and serving more than 255,000 patients annually.

ORPEA S.A. has advanced discussions with its banking partners, achieving an agreement in principle for financial restructuring as part of its safeguard procedure set for March. This agreement will facilitate €600 million in additional secured financing via a syndicated loan to meet liquidity needs.

Key enhancements include a revolving credit facility of €400 million and two credit facilities totaling €200 million, with a reduced margin of 2.00%. Additionally, ORPEA commits to dispose of real estate assets valued at €1.25 billion by December 2025. The restructuring aims to position the group for sustainable growth and re-establish its financial stability.

ORPEA S.A. announced its ongoing financial restructuring in line with its planned timetable, receiving support from key banking partners to establish additional financing and amend its June 2022 financing documentation. This includes participation from a group of long-term French investors led by Caisse des Dépôts et Consignations, who now hold a 50.2% stake in the company. The additional financing, structured in tranches, aims to meet the company's cash flow needs until the majority stake transfer occurs, contingent on approval from credit committees and completion of contractual documentation. ORPEA operates in 22 countries, focusing on care for frailty.

ORPEA S.A. has announced an extension of its amicable conciliation procedure until 25 March 2023. This extension, initiated by the President of the Commercial Court of Nanterre, aims to support unsecured financial creditors who have yet to join the Lock-Up Agreement established on 14 February 2023. The Company plans to submit a request for an accelerated safeguard procedure in March to finalize its financial restructuring, with a longstop date for accessing the Lock-Up Agreement set for 10 March 2023. ORPEA aims to secure support from unsecured creditors holding 45% of its debt as it navigates its financial challenges.

ORPEA S.A. has successfully signed a Lock-Up Agreement to advance its financial restructuring, committing to the previously announced Agreement in Principle from February 1. This agreement involves a collaboration with a group of French investors and key financial creditors, extending support for the company's restructuring efforts. The restructuring will entail significant capital increases, reducing the group's net financial debt by approximately €3.8 billion. However, this will lead to substantial shareholder dilution, as existing shareholders may only retain about 0.4% of the company's capital post-restructuring, with new issue prices below current market values.

ORPEA Group reported its revenue for the year ending 31 December 2022, showing strong growth despite ongoing financial restructuring. Revenues reached €4,681 million, an increase of +8.9%, with organic growth at +5.5%. In Q4 alone, revenue rose by +7.7% with +5.7% organic growth. However, shareholders face significant dilution due to planned capital increases, potentially reducing share value to below €0.20. The Group's cash position improved to €856 million, yet gross financial debt is estimated at €9.7 billion, raising concerns about liquidity past mid-2023.

ORPEA S.A., a leading global player in frailty care, has reported that the Canadian Pension Plan Investment Board (CPPIB) has reduced its holdings in the company. Following the sale of 7,424,188 shares between February 2 and February 7, 2023, CPPIB has now crossed below the legal thresholds of 20%, 15%, 10%, and 5% of the Company’s voting rights and share capital. CPPIB now holds 1,950,000 ORPEA shares, which equates to 3.01% of the share capital and 5.02% of the voting rights. ORPEA operates across 22 countries with over 72,000 employees, serving more than 255,000 patients and residents annually.