Latest news with #PIK
The Hindu
16-05-2025
- Science
- The Hindu
Atmospheric memory: How do monsoons ‘remember' the past?
How do monsoons really work? What makes them plentiful some years, but vanish completely in others, causing drought-like conditions? Climate scientists have been seeking answers to these questions for a long time. Now a research paper has come up with an intriguing explanatory concept: atmospheric memory. The study was conducted by two scientists -- Anja Katzenberger & Anders Levermann -- from the Potsdam Institute for Climate Impact Research (PIK). Titled 'Monsoon Hysteresis reveals Atmospheric Memory', it was published recently in the scientific journal PNAS. The study showed, for the first time, that the atmosphere can store moisture over extended periods, creating a physical memory effect. In other words,the atmosphere can 'remember' its previous state by storing physical information in the form of water vapour.' The paper also talks about how there is a tipping point in the system that determines monsoon rainfall. So, how does this discovery change our understanding of how monsoons work? What are its practical applications? What are the risks posed to this system by things like pollution and global warming? Guest: Anders Levermann, Professor of the Dynamics of the Climate System at the Institute for Physics and Astrophysics of the Potsdam University, Germany. Host: G. Sampath, Social Affairs Editor, The Hindu. Edited by Sharmada Venkatasubramanian. Listen to more In Focus podcasts:
Bloomberg
01-05-2025
- Business
- Bloomberg
Spain's Cirsa Offers PIK Bonds in Fresh Test of Risk Appetite
Spanish gaming company Cirsa is planning to issue new payment-in-kind toggle notes, a type of debt that gives issuers the option to delay interest payments until the final maturity date. Typically seen as more risky than conventional junk bond issuance, the company is planning to offer €320 million ($362 million) of five-year PIK toggle notes to refinance similar existing debt.
Associated Press
07-04-2025
- Business
- Associated Press
Ardagh Group S.A. provides an update on discussions with noteholders
LUXEMBOURG, April 7, 2025 /PRNewswire/ -- On 11 March 2025, Ardagh Group S.A. ('AGSA' or the 'Company') announced that it is engaging in negotiations with certain holders of its Senior Secured Notes ('SSNs') and Senior Unsecured Notes ('SUNs') who comprise two separate ad hoc groups of AGSA's debt. A group owning a majority of the SUNs are represented by Akin Gump Strauss Hauer & Feld LLP and PJT Partners ('SUN Group'). Another group owning a majority of the SSNs are represented by Gibson, Dunn & Crutcher LLP and Perella Weinberg Partners ('SSN Group'). The Company continues to engage in constructive discussions with the SUN Group and the SSN Group regarding the terms of a potential restructuring transaction. As an update to the announcement on 11 March 2025, the latest proposal received from the SSN Group (the 'SSN Proposal') includes the following key terms for a transaction: a potential divestment (subject to AGSA board approval) of the ordinary shares in Ardagh Metal Packaging S.A. ('AMP Shares') to a new special purpose vehicle holding structure ('New BidCo') owned by existing indirect shareholders of AGSA (the 'Existing Shareholders') and by participating holders of the SUNs. The existing preferred equity issued by Ardagh Metal Packaging S.A. to AGSA's subsidiary, Ardagh Investments Holdings Sarl's ('AIHS') would remain at AIHS; at completion, the pro forma equity in New Bidco would be held 80% by the Existing Shareholders and 20% by holders of the SUNs (subject to an allocation to participating holders of the senior secured toggle notes due 2027 issued by ARD Finance S.A. (the 'PIK Notes')), with pro-rata allocation based on participation rate; the exchange of the SSNs into (i) up to $1,892 million of new senior secured debt at AGSA, which would have second-out priority in respect of proceeds from security enforcement, would mature in June 2030, bear interest at 6.0% cash and 6.0% PIK interest, and have call protection of NC2, 50%, 25%, Par (the 'AGSA Exchange SSNs'); and (ii) $600 million of new first lien senior secured debt at New BidCo, which would be backstopped by the Steering Committee of the SSN Group with a 5.0% backstop fee payable in kind, have security granted over substantially all the assets of New Bidco, would mature in June 2030, bear 12.0% cash interest, and have call protection of NC2, 50%, 25%, Par (the 'New Bidco Debt'); participating SSN holders would agree to provide the Company with basket capacity available through August 2026 maturity for the incurrence of new debt that would rank the same as the AGSA Exchange SSNs to facilitate a refinancing of non-participating SSNs with the AGSA Exchange SSNs benefitting from a 'most favoured nations' clause in relation to the terms of the new debt issued or exchanged via this basket; existing holders of SSNs would be entitled to participate in a $1,200 million super senior new money facility at AGSA (the 'AGSA New Money'), which would have first-out priority in respect of proceeds from security enforcement. $400 million would be applied towards general corporate purposes and $800 million would be applied towards the refinancing of AIHS's existing term loan facility (the 'AIHS Facility'). The facility would mature in January 2030 (with a springing maturity), have call protection of NC2, 50%, Par, bear 9.0% cash interest, and would be backstopped by the Steering Committee of the SSN Group; participating SUNs would exchange pro rata into (i) new debt at AGSA, which would have third-out priority in respect of proceeds from security enforcement, mature in June 2030 with a springing maturity, bear 12.0% PIK interest, and have call protection of NC2, 50%, 25%, Par (except on conversion) (the 'AGSA Exchange SUNs'); and (ii) $511 million of a new preferred equity instrument issued by New BidCo which would be subject to a mandatory redemption offer obligation in June 2030 (the 'New Bidco Pref B'). Participating SUN holders would also receive a 7.5% upfront fee paid in the form of additional AGSA Exchange SUNs; participating holders of PIK Notes would exchange into new debt at AGSA which would have fourth-out priority in respect of proceeds from security enforcement, mature in June 2030 with a springing maturity, bear 12.0% PIK interest, and have call protection of NC2, 50%, 25%, Par (except on conversion) (the 'AGSA Exchange PIKs'); the AGSA Exchange SUNs and AGSA Exchange PIKs would be convertible into AGSA equity subject to an agreed participation threshold by participating SUN and PIK Notes; the consideration for the sale of the AMP Shares to New Bidco would comprise: (i) $600 million of SSNs being exchanged into the New Bidco Debt, (ii) a $763 million new preferred equity instrument issued by New BidCo to AGSA's subsidiary, AIHS, which would be subject to a mandatory redemption offer obligation in June 2030 and pay a dividend at an annual rate of 14.15% in cash or, on up to three dividend payment dates on which available cashflow is insufficient to pay such dividend in cash, in kind (the 'New Bidco Pref A'), (iii) the partial exchange of SUNs into $511 million of the New Bidco Pref B. Existing Shareholders would also receive $57 million of New BidCo Pref B; and the collateral for the AGSA Exchange SSNs, the AGSA Exchange SUNs, the AGSA Exchange PIKs and the AGSA New Money would be the same collateral as per the existing SSNs plus security over certain currently unpledged assets including over the Ardagh Glass Packaging Africa group (directly or indirectly), AGSA's equity interests in the Trivium group, the New Bidco Pref A, and other assets where practicable. After receiving the SSN Proposal, the Company shared a proposal with the SSN Group including the following key terms for a transaction: a potential divestment (subject to AGSA board approval) of the AMP Shares and the preferred equity in AMP currently held indirectly by AGSA to New BidCo (together with the AMP Shares, the 'AMP Interests'); at completion, the pro forma equity in New Bidco would be held 80% by the Existing Shareholders and 20% by holders of the SUNs, with pro-rata allocation based on participation rate; the exchange of the SSNs into (i) $1,892 million of new senior secured debt at AGSA, which would have second-out priority in respect of proceeds from security enforcement, would mature in June 2030 (with a springing maturity), would bear interest at an annual rate of 9.0% (4.0% cash; 5.0% PIK), and would have no call protection (the 'Company AGSA Exchange SSNs'); and (ii) $600 million of new first lien senior secured debt at New BidCo, which would have security granted over substantially all the assets of New Bidco, would mature in June 2030, and would bear 6.25% cash interest, subject to the ability to pay in kind to the extent New BidCo were to have insufficient cash flow and would have no call protection (the 'Company New Bidco Debt'). The exchange of SSNs into the Company New Bidco Debt would be backstopped by the Steering Committee of the SSN Group and (only in the case of a transaction with the consent of the SUN Group) the SUN Group with a 5.0% backstop fee payable kind. Non-participating SSNs would be left outstanding on their current terms; participating SSN holders would agree to provide the Company with basket capacity for the incurrence of new debt that would rank the same as the AGSA Exchange SSNs to facilitate a refinancing of non-participating SSNs, with the Steering Committee of the SSN Group benefitting from a right of first refusal in relation to the new debt issued or exchanged via this basket; existing holders of SSNs would be entitled to participate in a $1,210 million super senior new money facility at AGSA (the 'Company AGSA New Money'), which would have first-out priority in respect of proceeds from security enforcement. $400 million would be applied towards general corporate purposes, $800 million would be applied towards the refinancing of the AIHS Facility, and $10 million would be applied towards funding New BidCo's balance sheet. The facility would mature in January 2030 (with a springing maturity), have call protection of NC2, 50%, Par, (only in the case of a transaction with the consent of the SUN Group), bear 8.5% cash interest, and would be backstopped by the Steering Committee of the SSN Group and (only in the case of a transaction with the consent of the SUN Group) the SUN Group in case of their later participation in the transaction; participating SUNs would exchange pro rata into (i) new debt at AGSA, which would be pari passu to existing SUNs, would mature in June 2030 (with a springing maturity), and bear 12.0% PIK interest (the 'Company AGSA Exchange SUNs'); and (ii) $511 million of a new preferred equity instrument issued by New BidCo which would be subject to a mandatory redemption offer obligation in June 2030 and pay a cash dividend of 12.5%, subject to the ability to pay in kind to the extent New BidCo were to have insufficient cash flow (the 'Company New Bidco Pref B'). Participating SUN holders would also receive a 20.0% fee paid in the form of additional Company AGSA Exchange SUNs; the Company AGSA Exchange SUNs would be convertible into AGSA equity on terms to be agreed; consideration to be provided to holders of PIK Notes to be agreed; the consideration for the sale of the AMP Interests to New Bidco would comprise: (i) $600 million of SSNs being exchanged into the Company New Bidco Debt, (ii) $1,023 million of a new preferred equity instrument being issued by New BidCo to AIHS, which would be subject to a mandatory redemption offer obligation in June in 2030 and pay a cash dividend of 9.4% (subject to the ability to pay in kind to the extent New BidCo were to have insufficient cash flow) (the 'Company New Bidco Pref A'), and (iii) the partial exchange of SUNs into $511 million of the Company New Bidco Pref B. Existing Shareholders would also receive $57 million of Company New BidCo Pref B; and the collateral for the Company AGSA Exchange SSNs and the Company AGSA New Money would be the same collateral as per the existing SSNs plus security over certain currently unpledged assets including over the Ardagh Glass Packaging Africa group (directly or indirectly), the Company New Bidco Pref A, AGSA's equity interests in the Trivium group and other assets where practicable. The Company will provide further updates in due course. Disclaimer This release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of securities referred to in this announcement, in any jurisdiction, including the United States, in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, or an exemption from registration. This release contains 'forward-looking' information. The forward-looking information is based upon certain assumptions about future events or conditions and is intended to illustrate hypothetical results under those conditions. Actual events or conditions are unlikely to be consistent with, and may materially differ from, those assumed. Any views or opinions expressed in this release (including statements or forecasts) constitute the judgement of the Company as of the date of this material and are subject to change without notice. You are cautioned not to place undue reliance on any forward-looking information. Any projections or forecasts in this release are illustrative only and have been based on the estimates and assumptions when the Company's business plan was prepared. Such estimates and assumptions may or may not prove to be correct. These projections do not constitute a forecast or prediction of actual results and there can be no assurance that the projected results will actually be realized or achieved. Actual results may depend on future events which are not in the Company's control and may be materially affected by unforeseen economic or other circumstances.
Zawya
03-03-2025
- Business
- Zawya
Huawei and Jahez Group forge a strategic partnership to accelerate digital innovation and elevate user experience
Alriyadh: Huawei Tech Investment Saudi Arabia and Jahez Group have announced a new strategic partnership, marked by the successful integration of "Jahez," "Blu STORE," and "PIK" applications into HUAWEI AppGallery. This collaboration aims to expand digital services and enhance the user experience for millions of customers across the Kingdom. Both companies demonstrate their commitment to delivering innovative solutions that address the evolving needs of the Saudi market. Mr. Keith Li, Vice President of Huawei Tech Investment Saudi Arabia said: 'We are expanding the range of applications available on HUAWEI AppGallery to create a dynamic ecosystem for our end-users. By integrating Jahez Group's leading apps, we enhance the user experience, ensure seamless access to essential services, and reinforce our dedication to innovation in Saudi Arabia.' The integration introduces three distinctive apps to Huawei users. Jahez, one of Saudi Arabia's leading food delivery platforms, connects merchants, customers, and delivery partners through a seamless experience. PIK offers quick-commerce services, providing a wide variety of products ranging from fashion to electronics. Blu Store, the official merchandise hub for Al Hilal Club, remains one of the favorites among Saudi sports fans. This collaboration ensures users enjoy greater convenience and an enriched digital experience tailored to their needs. Eng. Ghassab Bin Mandeel, Chief Executive Officer of Jahez Group, underscored the importance of this partnership, stating: 'Our collaboration with Huawei opens an exciting chapter for Jahez Group. By integrating our apps onto the HUAWEI AppGallery, we broaden our reach and enhance the quality of services we provide to our users. This milestone solidifies our shared vision of driving digital transformation in Saudi Arabia.' This milestone delivers wide-reaching benefits to end users and the business community. Jahez Group significantly expands its user base, while Huawei users gain access to essential, locally relevant applications that improve their daily lives. Additionally, this partnership highlights the potential of technology-driven collaborations to drive innovation and growth within Saudi Arabia's thriving digital economy. Huawei and Jahez showcase a shared vision of leveraging cutting-edge technology to advance digital services across the Kingdom. This achievement sets the foundation for future collaborations, aligning with Saudi Arabia's Vision 2030 and driving the nation's leadership in the digital space. About Huawei: Huawei Consumer Business Group (CBG) is one of Huawei's three business groups, providing a range of products including smartphones, tablets, laptops, wearables, audio, monitors, smart screens, IOT and others. In Jan 2023, Brand Finance reveals Global 500 2022 list of the world's most valuable brands, Huawei ranks No. 31, Huawei's brand value is US$44.3 billion. In 2023, our total R&D spending reached more than USD 23 billion, representing 23.4% of Huawei's total revenue. The total R&D investment over the last decade now exceeds USD 154 billion. About Jahez Group: Jahez Group is an innovative Saudi business that uses disruptive technology to improve delivery experiences. As of March 31, 2021, it connects over 8 million customers with more than 12,000 merchant branches and 34,000 delivery partners across 47 cities in Saudi Arabia. Since its founding in 2016, Jahez has achieved significant growth, holding a 28% market share by February 2021. The platform has facilitated over 68 million orders, with 36 million delivered in the first nine months of 2021. Jahez was also listed on Nomu with a market capitalization of $2.4 billion, reinforcing its position as a leading delivery plat ( Jahez transferred to the main market TASI as of December 2024)
The Guardian
26-02-2025
- Science
- The Guardian
Total collapse of vital Atlantic currents unlikely this century, study finds
Vital Atlantic Ocean currents are unlikely to completely collapse this century, according to a study, but scientists say a severe weakening remains probable and would still have disastrous impacts on billions of people. The Atlantic meridional overturning circulation (Amoc) is a system of currents that plays a crucial role in the global climate. The climate crisis is weakening the complex system, but determining if and when it will collapse is difficult. Studies based on ocean measurements indicate that the Amoc is becoming unstable and approaching a tipping point, beyond which a collapse will be unstoppable. They have suggested this would happen this century, but there are only 20 years of direct measurements and data inferred from earlier times bring large uncertainties. Climate models have indicated that a collapse is not likely before 2100, but they might have been unrealistically stable compared with the actual ocean system. The latest study is important because it uses climate models to reveal the reason that the Amoc is more stable: winds in the Southern Ocean continuing to draw water up to the surface and drive the whole system. The study does not rule out an Amoc collapse after 2100, and other modelling research suggests collapses will occur after that time. 'We found that the Amoc is very likely to weaken under global warming, but it's unlikely to collapse this century,' said Dr Jonathan Baker at the UK's Met Office, who led the latest study. He said it was reassuring that an abrupt Amoc crash was improbable, and that the knowledge could help governments plan better for future climate impacts. Amoc weakening would still bring major climate challenges across the globe however, with more floods and droughts and faster sea level rise, he added. 'Of course, unlikely doesn't mean impossible,' he said. 'There's still a chance that Amoc could collapse [this century], so we still need to cut greenhouse gas emissions urgently. And even a collapse in the next century would cause devastating impacts for climate and society.' Prof Niklas Boers at the Potsdam Institute for Climate Impact Research (PIK) in Germany said the study delivered a substantial improvement in the understanding of Amoc. 'But even a weakening that is not due to a tipping point could have similarly severe impacts on, for example, tropical rains,' he said. 'One could even go as far as saying that, in the short term, it doesn't really matter if we have a strong weakening, say 80%, or a collapse.' The Amoc system brings warm, salty water northwards towards the Arctic where it cools, sinks, and flows back southwards. Global heating, however, is pushing water temperatures up and increasing the melting of the huge Greenland ice cap, which is flooding the area with fresh water. Both factors mean the water is less dense, reducing sinkage and slowing the currents. The Amoc was already known to be at its weakest in 1,600 years as a result of global heating, and researchers spotted warning signs of a tipping point in 2021. The Amoc has collapsed in the Earth's past, Baker said. 'So it's a real risk.' A collapse of Amoc would have disastrous consequences around the world, severely disrupting the rains that billions of people depend on for food in India, South America and West Africa. It would increase the ferocity of storms and send temperatures plunging in Europe, while pushing up sea levels on the eastern coast of North America and further endangering the Amazon rainforest and Antarctic ice sheets. Scientists have previously said a collapse must be avoided at all costs. The latest study, published in the journal Nature, used 34 state-of-the-art climate models to assess the Amoc. The researchers used extreme conditions – a quadrupling of carbon dioxide levels or a huge influx of meltwater into the North Atlantic – so that the changes in the modelled ocean currents were clear. Sign up to Down to Earth The planet's most important stories. Get all the week's environment news - the good, the bad and the essential after newsletter promotion They found that while the Amoc slowed by between 20% and 80% this century, it did not collapse completely in any of the models. This was because winds in the Southern Ocean continued to draw water up to the surface. Balancing this, to the scientists' surprise, were new downwelling areas in the Pacific and Indian oceans, but they were not strong enough to wholly compensate for the slowing of the Amoc, leaving it significantly weakened. 'Even just a 50% reduction in strength would result in a large drop in heat transport that would alter regional and global climates,' said Dr Aixue Hu at the Global Climate Dynamics Laboratory in Colorado, US. 'There is therefore no reason to be complacent about Amoc weakening, and every effort must still be made to combat the global warming that drives it.' Prof Stefan Rahmstorf, an Amoc expert at PIK, said the latest study considered a collapse to be the total cessation of the currents in the North Atlantic, while previous studies have termed a greatly weakened Amoc a collapse. Amoc is partly driven by the sinking of dense water and partly by winds, and the latest study provides particular insights on the latter. 'It does not, however, change the assessment of the risk and impact of future Amoc changes in response to human-caused global warming, as that is linked to the [density-driven] part of Amoc,' Rahmstorf said. His own research on post-2100 Amoc collapse, currently under review, concludes 'a collapse cannot be considered a low-probability event any more'. Despite the revelations in the latest study, the extent of future Amoc weakening and the timing of any collapse remain uncertain. 'There's a huge amount of work left to do, because there's still a huge range across models in how much Amoc will weaken,' Baker said, with increasing the resolution of models one important requirement. 'We also show that the Southern Ocean and the Pacific Ocean are more important than we thought for Amoc, so we need better observations and modelling in those regions. That's crucial to improving the projections so we can better inform policymakers,' he said.
