(Bloomberg) -- KKR & Co Inc.-owned Selecta Group BV has hired advisers to help it deal with upcoming maturities, according to people familiar with the matter.
The Swiss vending machine operator has tapped Goldman Sachs Group Inc. to look into a potential sale of the company and investment bank PJT Partners to advise on the refinancing of about €1.1 billion ($1.2 billion) of debt coming due in 2026, the people said, asking not to be identified discussing private information. Paul Hastings LLP has also been engaged as legal adviser, they added.
Spokespeople for KKR, Selecta, Goldman Sachs and PJT declined to comment, while representatives for Paul Hastings didn’t immediately respond to a request for comment.
PJT’s engagement was first reported by 9fin.
Selecta has €760 million-equivalent of first-lien notes due in April 2026, and €325 million-equivalent of second lien notes due in July that year, according to its earnings for the quarter ending in June. Those bonds are the result of a debt restructuring completed in 2020, when the company suffered from the impact of the pandemic on footfall in offices, stations and airports. As part of the deal, KKR injected €125 million into the business.
The company’s €316 million second lien notes due in July 2026 were quoted just below 90 cents on the euro on Friday, while the €739 million notes due in April that year were quoted at almost par, according to data compiled by Bloomberg.
KKR’s special situations arm, which was originally a creditor to Selecta, got control of the company in 2015. That strategy — which included investments in fast food chain Telepizza and mattress maker Hilding Anders — has been wound down in recent years.
The company’s credit profile “includes strong liquidity and resilient margins, which may buy valuable time in an uncertain macroeconomic environment in Europe,” according to Bloomberg Intelligence credit analyst Stephane Kovatchev. “That said, volatile cash generation and inflation could remain key concerns in 2025.”
(Updates with bond prices in sixth paragraph)
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