Reno de Medici Group Signs Transaction Support Agreement for Proposed Recapitalisation

Reno de Medici Group (RdM) has entered into a binding Transaction Support Agreement with its shareholder and noteholders representing 85.43% of its €600 million Floating Rate Sustainability-Linked Senior Secured Notes due 2029, marking a key step in a proposed recapitalisation aimed at strengthening the group's financial position.

The agreement, signed on July 16, forms part of a comprehensive review of the group's capital structure. Under the proposed transaction, RdM plans to convert up to €300 million of debt into equity, secure €100 million in new super-priority senior secured financing, extend the maturity of its revolving credit facility and debt instruments to 2031 or beyond, and reduce future cash interest payments.

The company said the recapitalisation is expected to substantially reduce leverage, improve liquidity and provide a stable platform to continue its ongoing turnaround plan.

The proposed transaction has been negotiated with lenders under the group's Super Senior Revolving Credit Facility, while other noteholders have been invited to join the Transaction Support Agreement by July 31, 2026.

As part of the recapitalisation, participating noteholders would exchange existing notes for new senior secured notes and receive equity in a newly incorporated holding company. Providers of the new financing would also receive equity, while the current shareholder would retain an instrument representing 5% of the economic rights in the new holding company, with the potential for additional upside subject to certain conditions.

The recapitalisation will be implemented under Article 57 of the Italian Insolvency Code and remains subject to approval by the Italian court, execution of definitive transaction documents, regulatory and antitrust clearances, and other customary conditions. The company expects the transaction to be completed in the fourth quarter of 2026.

RdM said the recapitalisation is intended to support its medium-term business plan, which focuses on operational efficiency, capacity optimisation, product innovation and the expansion of packaging and paper-based solutions.