22.06.2022
Wien (ots) -
An agreement was recently signed between lenders and current owners of Lower Austria-based Schur Flexibles Group to refinance and recapitalize the group. The agreement will provide EUR 150 million in fresh capital in two tranches (of which EUR 60 million are available immediately and further EUR 90 million will be available as of closing). EUR 50 million of the new capital are earmarked for strategic acquisitions and M&A activities to ensure further business growth. In addition, upon closing of the agreement, which is expected to take place in September 2022, there will be a debt haircut of up to 75% of the existing bank liabilities and the lenders will acquire the ownership of the Group.
Such restructuring measures will reduce the company's leverage to industry levels, providing the company with greater flexibility to navigate the current volatile economic environment. In addition, no short-term liabilities will burden the company's liquidity. With their binding financing commitments, the future owners underline their belief in the resilient business model of Schur Flexibles Group and express their long-term commitment to further develop the company strategically. In addition, any civil and criminal procedures originating from the period prior to the restructuring will be subject to determination by the relevant competent authorities and courts. However, these proceedings have no influence on the operational business of the group or the future owners.
The restructuring course taken is already reflected in the positive business developments of the company. The Group’s performance in 2022 is developing in line with the business plan and is therefore on track even under difficult market conditions.
All stakeholders will work closely together with the management team to implement measures that will secure the company's economic success in the future. The further development of Schur Flexibles is intended to further expand its role as a leading solution provider of fully recyclable plastic packaging solutions. In doing so, the company can benefit from the experience of the future owners in the paper and packaging industry.
The consortium of lenders and future owners – consisting of various banks and funds, including Apollo, Capital Four, Guggenheim and Palmer Square - would like to expressly thank all stakeholders, in particular employees, customers, suppliers, investors and financial institutions for their support during the last weeks, which contributed to the successful restructuring solution of the company.
The Group currently employs around 2,200 people at 23 production sites in eleven countries.
Highlights of Schur Flexible Group’s recapitalisation transaction:
- New ownership structure: A consortium comprised of banks and funds, including Apollo, Capital Four, Guggenheim, and Palmer Square, will as the new owners shape the future strategy of the company. The change in ownership is accompanied by a debt reduction of EUR 400 million across the capital structure.
- Significant de-leveraging: Up to 75% of Schur Flexible’s senior debt to be eliminated, bringing the group’s pro-forma leverage profile to industry standard levels.
- Liquidity headroom and fortress balance sheet: Transaction will inject EUR 150 million in new money capital, of which EUR 50 million is earmarked for strategic acquisitions and M&A activities to ensure further corporate growth. EUR 60 million in liquidity will be provided immediately, and another EUR 90 million after closing.
- Significant runway: No debt maturities on the new and reinstated loan facilities until September 2026, and no fixed amortisation obligations.
- Reduced interest costs: Substantial reduction of approximately EUR 10 million in annual cash debt servicing costs post-transaction.
- Robust performance: The performance of Schur continues to meet the 2022 budget, despite challenging market conditions. Post-closing, the Company can draw on the extensive experience of the new equity owners managing investments in the paper & packaging industry to build upon such robust performance.
- Implementation: Transaction has support from 100% of relevant creditors and the existing shareholders. Closing of the transaction is expected in September 2022.
Martin Jenewein, MBA
Senior Partner
SMJ Partners Consulting GmbH
Phone: +43 664 2377654
Mail: jenewein@smj.at
Web: https://www.smj.at
Original-Content von: SMJ Partners Consulting GmbH, übermittelt durch news aktuell
An agreement was recently signed between lenders and current owners of Lower Austria-based Schur Flexibles Group to refinance and recapitalize the group. The agreement will provide EUR 150 million in fresh capital in two tranches (of which EUR 60 million are available immediately and further EUR 90 million will be available as of closing). EUR 50 million of the new capital are earmarked for strategic acquisitions and M&A activities to ensure further business growth. In addition, upon closing of the agreement, which is expected to take place in September 2022, there will be a debt haircut of up to 75% of the existing bank liabilities and the lenders will acquire the ownership of the Group.
Such restructuring measures will reduce the company's leverage to industry levels, providing the company with greater flexibility to navigate the current volatile economic environment. In addition, no short-term liabilities will burden the company's liquidity. With their binding financing commitments, the future owners underline their belief in the resilient business model of Schur Flexibles Group and express their long-term commitment to further develop the company strategically. In addition, any civil and criminal procedures originating from the period prior to the restructuring will be subject to determination by the relevant competent authorities and courts. However, these proceedings have no influence on the operational business of the group or the future owners.
The restructuring course taken is already reflected in the positive business developments of the company. The Group’s performance in 2022 is developing in line with the business plan and is therefore on track even under difficult market conditions.
All stakeholders will work closely together with the management team to implement measures that will secure the company's economic success in the future. The further development of Schur Flexibles is intended to further expand its role as a leading solution provider of fully recyclable plastic packaging solutions. In doing so, the company can benefit from the experience of the future owners in the paper and packaging industry.
The consortium of lenders and future owners – consisting of various banks and funds, including Apollo, Capital Four, Guggenheim and Palmer Square - would like to expressly thank all stakeholders, in particular employees, customers, suppliers, investors and financial institutions for their support during the last weeks, which contributed to the successful restructuring solution of the company.
The Group currently employs around 2,200 people at 23 production sites in eleven countries.
Highlights of Schur Flexible Group’s recapitalisation transaction:
- New ownership structure: A consortium comprised of banks and funds, including Apollo, Capital Four, Guggenheim, and Palmer Square, will as the new owners shape the future strategy of the company. The change in ownership is accompanied by a debt reduction of EUR 400 million across the capital structure.
- Significant de-leveraging: Up to 75% of Schur Flexible’s senior debt to be eliminated, bringing the group’s pro-forma leverage profile to industry standard levels.
- Liquidity headroom and fortress balance sheet: Transaction will inject EUR 150 million in new money capital, of which EUR 50 million is earmarked for strategic acquisitions and M&A activities to ensure further corporate growth. EUR 60 million in liquidity will be provided immediately, and another EUR 90 million after closing.
- Significant runway: No debt maturities on the new and reinstated loan facilities until September 2026, and no fixed amortisation obligations.
- Reduced interest costs: Substantial reduction of approximately EUR 10 million in annual cash debt servicing costs post-transaction.
- Robust performance: The performance of Schur continues to meet the 2022 budget, despite challenging market conditions. Post-closing, the Company can draw on the extensive experience of the new equity owners managing investments in the paper & packaging industry to build upon such robust performance.
- Implementation: Transaction has support from 100% of relevant creditors and the existing shareholders. Closing of the transaction is expected in September 2022.
Pressekontakt:
Martin Jenewein, MBA
Senior Partner
SMJ Partners Consulting GmbH
Phone: +43 664 2377654
Mail: jenewein@smj.at
Web: https://www.smj.at
Original-Content von: SMJ Partners Consulting GmbH, übermittelt durch news aktuell
