Lecta restructures and agrees new credit facilities with shareholders and creditors
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Lecta, Barcelona, has reached financial agreements with its main shareholders and creditors to improve its liquidity, support its ongoing strategic initiatives, and strengthen its working capital.
The company has been granted a €10 million credit facility to support its ongoing working capital requirements, as well as a deferral of interest payments due in early September under its Super Senior Facility Agreement and New Money Notes. In addition, loans under the Super Senior Credit Facility Basket have been increased by €100 million to facilitate the coverage of medium-term capital requirements.
To meet its medium-term financial needs, Lecta also intends to create new secured financing for its new business units planned as part of a restructuring in the coming weeks. Lecta explains that it wants to divide the group into four independent business areas (fine paper, self-adhesive materials, distribution, specialty products). These will be managed independently in order to streamline processes, increase efficiency, and achieve synergies. In addition, the new structure will facilitate financing and value realization solutions for the individual business units, as well as growth initiatives and cost management.
Details of the additional measures are still being finalized, and the company will announce further updates and announcements in due course.
Against the backdrop of weak markets and ongoing price pressure, Lecta slipped into the red in both net income and operating income in the second quarter of this year, with EBITDA falling to €11 million (2024: €44 million).
