#None #Exchange Offer #Irving #CP Atlas Buyer #American Bath Group

CP Atlas Buyer, Inc. Successfully Completes Exchange Offer

In a major financial move, CP Atlas Buyer, Inc., the parent entity of American Bath Group, LLC, has announced the successful conclusion of its exchange offer for outstanding 7.000% Senior Notes due in 2028. This strategic initiative is a pivotal part of the company's financial restructuring plan aimed at strengthening its balance sheet and optimizing capital.

On July 24, 2025, the Company reported that the exchange offer had garnered overwhelming support, with approximately 93.79% of the senior notes held by Eligible Holders being tendered. This totaled an impressive $478,327,000 in principal amount of outstanding notes, underscoring the confidence of investors in the Company's long-term strategy. The exchange was designed to swap these old notes for newly issued Second Lien PIK Toggle Notes due in 2031, which will offer a higher interest rate of 12.750% per annum.

The Details of the Exchange

The exchange offer was not initiated lightly; it came alongside a broader strategy including the consent solicitation to amend the terms of the old notes. This involved seeking approvals to eliminate restrictive covenants that have, in the past, limited operational flexibility. The successful consents allowed alterations to the existing indenture governing the old notes, simplifying mergers, consolidations, and modifying certain other provisions.

Furthermore, on July 9, 2025, just a few weeks before the expiration, the Company had already received the required number of approvals for these amendments, paving the way for a smoother exchange process. This commitment to engaging and addressing the needs of its bondholders is commendable and reflects a proactive management approach.

Implications of the Exchange

With the exchange of the old senior notes, the Company anticipates a significant decrease in outstanding notes from approximately $510 million to around $31.6 million after settling the exchange offer. This not only lightens the Company's debt load but also aligns its financial obligations with the Company’s growth strategies moving forward.

The effective interest of 12.750% on the new notes denotes a critical measure taken by the Company to enhance its financial profile and investment appeal, especially in a competitive market. Notably, the strategic planning involved in timing these transactions was integral; the issuance reflects market conditions and the Company’s desirability amongst institutional buyers.

Commitment to Stakeholders

The Company is dedicated to keeping open lines of communication with its stakeholders throughout this transformative period. According to spokesperson Anntal Silver, the exchange initiative represents a fundamental pillar in securing future growth while balancing structure and shareholder value. With D.F. King Co., Inc. appointed as the Exchange Agent, relevant queries from bondholders can be adequately addressed, ensuring transparency and continuing trust among stakeholders.

Following the settlement on July 28, 2025, the Company projects its aggregate principal amount of the exchanged notes to be approximately $488.6 million, showcasing a positive shift in financial structure that is poised to support its operational capacities and enhance investor confidence further.

About American Bath Group

American Bath Group, LLC, is renowned in the North American market for its comprehensive array of bathware products, including showers, bathtubs, and related accessories. With a solid reputation for quality and innovation, the Group remains committed to delivering leading-edge solutions for its consumers.

In conclusion, as CP Atlas Buyer, Inc. embarks on this new chapter with an elevated capital structure and bolstered investor confidence, it stands as a testament to effective management and strategic foresight in rapidly changing markets.