Debtwire, the leading provider of news, data and analysis on debt markets worldwide, has calculated that more than USD 17bn worth of major restructuring and stressed refinancing transactions have been completed in Turkey since early 2018.
- Five major restructuring and stressed refinancing transactions completed since 2018
- The largest transaction was Yildiz Holding’s USD 5.5bn debt refinancing agreement
- Other significant refinancing transactions include Bereket Enerji, OTAS, Dogus Holding and Arkas Holding
Istanbul, Turkey, 19th June 2019: Debtwire, the leading provider of news, data and analysis on debt markets worldwide, has calculated that more than USD 17bn worth of major restructuring and stressed refinancing transactions have been completed in Turkey since early 2018.
Five jumbo-sized restructuring and stressed refinancing transactions have been signed. The data was announced at Debtwire’s Turkish Corporate Restructuring Forum held in Istanbul on 19th June.
The largest of these transactions is Yildiz Holding, a Turkish food manufacturer and the owner of household brands Godiva Chocolates and McVitie’s. The company signed an up-to-eight-year USD 5.5bn debt refinancing agreement in early May 2018, shortly before last summer’s precipitous slide in the value of the lira.
David Graves, Associate Editor at Debtwire commented: “Whether by luck or prescience, Yildiz timed its refinancing efforts to perfection, reaching a deal with creditors shortly before the currency crisis created an unforgiving borrowing environment. Many others have been less fortunate and continue to be tied up in protracted negotiations with their lenders.”
Other large refinancing loans agreed include Bereket Enerji’s USD 4.6bn eleven-year refinancing and a EUR 2.3bn syndicated facility raised by Dogus Holding – the company behind famed steakhouse Nusr-Et. Turkish conglomerate Arkas Holding’s USD 800m five-year refinancing deal, struck with 18 local banks, ranks as the smallest transaction on Debtwire’s list.
David Burlison, Managing Director and co-head of Lazard’s EMEA Restructuring practice commented: “All countries need a framework and a practical approach to managing corporate distress. Recent activity in Turkey, through deals such as OTAS, has shown us that a robust and practical approach is being taken by all stakeholders, this includes banks, corporates and regulators. If further corporate restructurings are required, the approach adopted to date and the precedents now in place should provide a solid platform to address future issues successfully. This in turn will give further confidence to international lenders and other stakeholders to continue investing in the Turkish market.”
Meanwhile, last year holders of a defaulted USD 4.75bn loan to Ojer Telekomunikasyon (OTAS), an investment vehicle holding a 55% stake in Turk Telekom, enforced their security and transferred the asset to a new special purpose vehicle (SPV) with a total debt amount of USD 3.7bn.
Graves continued: “There remains a large – and growing – number of sizeable workout situations to be resolved in Turkey. These include high profile borrowers such as Hema Endustri, Istanbul Deniz Otobusleri and Gama Holding – all of which are restructuring situations Debtwire was the first to break news on.”
