Latecoere Announces Comprehensive Recapitalization
May 08 2023 - 2:25PM
Business Wire
- Latecoere and its stakeholders have agreed on the principles
of a business recapitalization, including a committed capital
increase of at least €100 million, in conjunction with significant
debt reduction
- Latecoere is currently rebounding from the COVID crisis,
having grown revenue +39% in 2022, while also navigating supply
chain challenges and associated increased working capital
requirements arising from the aerospace recovery. This agreement
puts Latecoere on a strong footing to continue supporting its
customer growth requirements
- Agreement enables Latecoere to implement its industrial
objectives and confirms the central role of France and the Toulouse
region within this vision
Regulatory News:
Latecoere (Paris:LAT), a tier one partner to major international
aircraft manufacturers, announces today that it has reached an
agreement in principle with its majority shareholder, the EIB and
its Prêts Garantis par l’Etat (PGE) lenders. This comprehensive
recapitalization agreement has been negotiated under the aegis of
the Comité Interministériel de Restructuration Industrielle
(CIRI).
While the aerospace industry has been through an unprecedented
crisis linked to the COVID pandemic and subsequent restart –
Latecoere has itself been faced with significant challenges in
order to meet increasing production demand, absorb historic
hyper-inflation pressures and also contend with supply chain
challenges and shortages of parts from key suppliers. This
agreement provides Latecoere with a solid capital structure to
continue supporting its customers through the industry ramp-up
currently planned for the remainder of 2023 and beyond.
The Recapitalization Agreement includes:
- Immediate liquidity funding, through a €45 million loan from
funds advised by its reference shareholder Searchlight Capital
Partners, L.P. (“SCP”);1
- The Company is expecting to launch a rights issue with
shareholders’ preferential subscription rights for a minimum amount
of €100 million fully underwritten by SCP, and to be concluded
before year end;
- €183 million debt reduction, providing Latecoere with a
sustainable capital structure. The reinstated debt maturity is to
be set to 2027. Affected lenders will retain exposure to future
value creation through a newly issued Retour à Meilleure Fortune
(“RMF”); and
- As part of the transaction a limited amount of residual PGE
debt may be converted to equity on terms yet to be agreed. The
parties don’t expect this amount to exceed 10% of the fully diluted
equity post rights issue.
Thierry Mootz, Group Chief Executive Officer, stated: “This
agreement is a positive development for Latecoere, its employees
and broader stakeholders. I would like to thank all the parties
involved for their support and this positive outcome. With a
significantly reinforced capital base, Latecoere is well positioned
to complete its development strategy, which we embarked on in 2021.
In this next phase of development, the Group will continue to
invest in its Toulouse footprint, with further investment planned
for the Montredon industrial site, focusing on high-value
activities. We will continue to expand the business, building on
recently won and to be awarded commercial activities, both in the
commercial and defense sectors, as well as aspire to create new
strategic alliances with industrial partners. Lastly, the Group
intends to position itself as a strategic partner for the French
State and a key contributor to the French national aerospace
industry by strengthening its industrial footprint in Occitanie and
the Nouvelle Aquitaine’s region.”
With this Recapitalization Agreement, Latecoere wishes to
reiterate the principles of its industrial vision, which consist of
a.) maintaining its decision centre in Toulouse; b.) consolidating
its value-add activities in the Toulouse region within its sites at
La Roseraie and Montredon; and c.) investing in its global
operating footprint to serve its European and American aerospace
client base.
The recapitalization has been approved by the investment
committee of SCP, the affected lenders and the French state, but
remains subject to long form documentation and final approval by
the affected lenders’ credit committees, under the aegis of the
CIRI and Maître Bourbouloux. This agreement will be documented in a
conciliation protocol which is to be homologated by the Tribunal de
Commerce de Toulouse.
Latecoere will keep the market informed in due course once the
conciliation protocol is homologated.
About Latecoere
As an international group and "Tier 1" partner of the world's
leading aircraft and spacecraft manufacturers (Airbus, Boeing,
Bombardier, Dassault Aviation, Embraer, Lockheed Martin), Latecoere
serves the aerospace sector with innovative solutions for a
sustainable world. The Group operates in all segments of the
aerospace industry (commercial, regional, business and military),
in two business areas:
- Aerostructures (55% of sales): doors, fuselage, wing and
empennage, rods and struts.
- Interconnection Systems (45% of sales): aeronautics and space
wiring, avionics racks, onboard equipment, electronic systems.
As of December 31, 2022, the Group employed 5,918 people in 14
countries. Latecoere is listed on Euronext Paris - Compartment B,
ISIN Code: FR0000032278 - Reuters: AEP.PA - Bloomberg: AT.FP
1 The shareholder loan of up to €45 million from SCP to be
repaid as part of the €100 million rights issue
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230508005649/en/
Thierry Mahé / Media Relations +33 (0)6 60 69 63 85
LatecoereGroupCommunication@latecoere.aero
Latin American Minerals (TSXV:LAT)
Historical Stock Chart
From Apr 2024 to May 2024
Latin American Minerals (TSXV:LAT)
Historical Stock Chart
From May 2023 to May 2024