EQT has offered a €220m equity injection to restructure Colisée, its struggling French nursing home operator, as part of a broader recapitalisation effort involving a partial debt write-down and equity swap.

Under the proposed terms, holders of €1.2bn in secured loans would write off approximately 36% of their debt in return for a 33% equity stake in the business. While the deal is not yet final, sources report that lenders have responded positively to the offer.

EQT acquired Colisée in 2020. The company, which operates 400 sites across France, Belgium, and southern Europe, is Europe’s fourth-largest nursing home operator. Colisée has faced growing financial pressure amid accounting discrepancies and tightening liquidity, compounded by broader economic headwinds and rising interest rates. Moody’s downgraded the group’s credit rating to Caa2, citing “high credit risk” and missed expectations for earnings recovery.

The deal would be the latest in a wave of private equity-led debt restructurings in France. Earlier this year, Altice closed a €24bn agreement with creditors, while Casino Guichard-Perrachon exchanged over €5bn in debt for equity in its own restructuring.

The recapitalisation would also address one of EQT’s two underperforming French portfolio companies. The other, medical diagnostics provider Cerba, is also trading at distressed levels with leverage reportedly reaching 8.6x EBITDA. EQT and Colisée declined to comment on the restructuring talks.

Source: Financial Times

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