Successful Completion of Recapitalisation

Steinhausen, 29. October 2020, Selecta is delighted to announce the successful completion of the comprehensive recapitalisation of the Group (the “Transaction”) first announced on 8 September 2020.

The successful recapitalisation, which was finalised on 29 October, demonstrates the conviction of the Group’s shareholders, lenders under its revolving credit facility and holders of the Notes in the Company and management team.

Selecta now has the financial strength and flexibility to not only forge a path through the current challenging environment but also to drive future growth, capitalise on new opportunities and come out the other side of the Covid-19 crisis stronger and better. In summary the Transaction:

• provides €175 million of new money from the shareholders by way of a cash funding of €125 million and the settlement of €50 million outstanding under a super senior liquidity provided in March 2020;
• relieves material cash interest;
• extends debt maturities through 2026;
• significantly deleverages the balance sheet at the level of the operating business; and
• demonstrates broad support from all key stakeholders and commitment to Selecta’s future

As a result, the Group will benefit from increased operating flexibility, is in a strong position to execute on the strategic business plan and to work with its clients and its business partners to deliver an industry-leading consumer experience and service.

Joe Plumeri, Executive Chairman of Selecta Group, said: “The completion of the recapitalisation is transformational for Selecta. An improved capital structure and 2 significant additional liquidity provides a strengthened platform to weather the ongoing impact from Covid-19 and to fuel future growth.

I would like to thank our Noteholders, shareholders and creditors for their support during this process. We are also grateful to our loyal suppliers and clients and the continued commitment of our hard-working colleagues.”

Christan Schmitz, CEO of Selecta Group, commented: “With our renewed financial strength, we have the opportunity to transform our business through our ‘One Selecta’ strategy. By leveraging our market leading position, unique business proposition and strong market fundamentals, Selecta is well positioned for profitable long-term growth.”