Apollo has paused new refinancing plans for Estonian wood pellets producer Graanul Invest (B3/B-/B-), market sources told 9fin.
Goldman Sachs, which had been sounding out the market over a potential refinancing, almost had the books fully covered with commitments coming from both new money and incumbent lenders, according to sources.
But the sponsor has only temporarily shelved the refinancing plan. Lenders involved in the talks said Apollo feels confident it can get better terms later this year, on the back of a positive trajectory of the business.
After a positive first quarter 2026, Graanul also removed short-term contracting risk by signing a contract extension with a “key customer” until 2030, Fitch said in a report.
Though the rating agency also added that its rating remains “constrained by the still material risk related to the ability to maintain stable sales volumes and by high leverage”.
The new bond would have come in the 9s area with a three-year single tranche, sources said, replacing the €229.7m 2029 FRNs and the €347.6m 2029 SSNs, which were put in place in September 2025 as part of the exchange A&E transaction.
The notes pay coupons of E+620bps and 8.5%, respectively,...
