Partners Group Faces €6 Billion Refinancing Challenge

Partners Group Holding AG is facing mounting pressure to refinance around €6 billion ($7 billion) of debt across three portfolio companies — Emeria SASU, Ammega Group BV and luxury watchmaker Breitling AG — with billions of euros in loans maturing in 2028.

The debt of all three companies is trading well below face value, while their credit ratings have fallen to the lowest junk level, raising concerns among creditors about refinancing risks. Partners Group has also recently cut the valuations of Emeria and Ammega, while Breitling is dealing with weaker demand for luxury watches. Emeria, which carries about €3.5 billion in debt, is the biggest concern for creditors.

Partners Group has reportedly considered injecting around €200 million, though some lenders believe €500 million to €600 million may be needed to bring leverage to a sustainable level. The refinancing pressure comes as Partners Group faces broader scrutiny from investors following client withdrawals, a short-seller attack and a sharp decline in its share price.

Pic Courtesy: google/ images are subject to copyright