Lecta completes recapitalisation

05 Feb 2020 − 

Holders of former senior secured notes are the new owners of the company.

Lecta has completed its comprehensive recapitalisation announced in September last year and has now a new shareholder base featuring "institutions wih extensive experience investing in the sector". Lecta Group Executive Chairman Andrea Minguzzi said that Lecta has now a significantly de-levered capital structure and new sources of liquidity, enabling the company to take advantage of new market opportunities.

In addition, the company said that support of its operations in France from the French authorities are expected to be confirmed and implemented shortly after the recapitalisation completion date.

The recapitalisation was implemented via the transfer of Sub-Lecta S.A. to be indirectly held by a newly incorporated UK company, Lecta Ltd, and the exchange of existing senior secured notes to new longer dated debt instruments and equity.

Lecta has also entered into an agreement to refinance and replace existing revolving credit facility. It also provides additional liquidity and financial flexibility which it needs for its transformation towards a specialty paper company. The holders of existing senior secured notes will receive new notes and 100% of the equity in the new Lecta company. The new capital structure reduces substantially the company's cast interest burden and provides longer-dated maturities, Lecta explained.

EUWID Pulp and Paper keeps busy professionals up-to-date on the latest news from international pulp and paper markets.

Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.

Tags of this news:

previous − China relases new allocations for RCP imports

Newsprint prices in Poland drop as Kwidzyn discontinues newsprint production  − next