Lone Star Funds, the private equity owner of Evoca, is reviewing next steps that could range from handing the business to its creditors to pursuing a sale, according to people with knowledge of the discussions who requested anonymity because they are not authorized to speak publicly. Evoca has been in preliminary talks with creditors The Carlyle Group Inc. and Park Square about exchanging debt for equity, but those conversations have not led to an agreement. PJT Partners Inc. is working with the company on its options.
Evoca - whose machines are commonplace in hotels, cafes and workplaces - now bears a heavier load of borrowings. One of its holding companies took on €210 million in payment-in-kind notes from Carlyle and Park Square in 2019, an amount the report cited as $241 million. At the operating company level, Evoca also has €550 million of notes due the same year. Bloomberg pricing data showed those notes quoted one point lower, at 89 cents per euro on Wednesday.
In June, Fitch cut Evoca's credit rating by one notch to B-, deep in speculative territory, citing a 16% year-on-year decline in 2025 revenues that came in well below expectations. The rater also flagged leverage of 8.2x as of the end of 2025, exceeding projections. Even so, management's cost cuts have started to show up in the numbers. Second-quarter earnings reflected a pickup after a soft start to the year, with revenues up 14% year on year in the three months through the end of June.
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Representatives for Evoca, Lone Star and PJT did not respond to requests for comment. Park Square and Carlyle said they would not comment. For anyone watching this saga, the takeaway is simple: with debt costs high and maturities bunching in 2029, outcomes hinge on whether lenders are willing to take equity or push for other remedies.
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