LR Health & Beauty SE Faces Potential Breach of Leverage Covenant

LR Health & Beauty SE, headquartered in Ahlen, is confronting a potential breach of its Leverage Covenant as of 30 September 2025. The covenant requires that their net debt to EBITDA ratio remains below 4.50:1. The company has resolved to initiate discussions with bondholders regarding the possible amendment of bond terms.

The primary reason for this challenge is an unexpected rise in marketing and sales costs, affecting EBITDA projections. Previously, the company had expected a significant growth in EBITDA. However, they now anticipate earnings between EUR 24 million and EUR 27 million, revising down from the previous year's EUR 27.3 million.

No immediate voting on amendments is set, but the management board plans to inform bondholders regarding any necessary changes or waivers as financial assessments progress.