Lecta enters lockup deal to support €400m debt restructuring

Core Viewpoint - Spain-based Lecta has entered a lockup agreement with key stakeholders to support a €400 million ($468.4 million) recapitalisation plan aimed at debt restructuring [1][2]. Group 1: Recapitalisation Details - The recapitalisation will reduce Lecta's debt burden by approximately €400 million, bringing the company's net leverage ratio below 3× on a pro forma basis [1][2]. - The plan includes provisions for up to €100 million in new financing dedicated to the specialities unit, aimed at operational changes and working capital needs [2]. Group 2: Financial Stability and Transformation - The de-levered capital structure and new liquidity are expected to provide Lecta with a stable financial footing, facilitating the ongoing transformation process and enhancing cost competitiveness [3]. - The measures are anticipated to cut cash interest expenses and improve cash flow [3]. Group 3: Interim Financing and Future Plans - The lockup agreement allows Lecta to obtain €20 million in interim liquidity from stakeholders while the broader restructuring takes place [4]. - The interim financing is expected to support operations as the company works towards closing the recapitalisation, projected to be completed by the first quarter of 2026 [4]. Group 4: Stakeholder Support and Product Development - Lecta's chairman expressed gratitude for the continued support from key stakeholders, viewing this milestone as a step towards a sustainable, long-term solution for the group [5]. - Recently, Lecta introduced Metalvac Ice Cream, a recyclable metallised paper for flexible packaging in ice cream and frozen foods [5].