Leonardo & Co. Advises Sinterama

Leonardo & Co., in association with Houlihan Lokey, is pleased to announce that Sinterama S.p.A. has completed a successful refinancing of its long-term debt and short-term credit lines for a total amount of approximately €55 million. The transaction closed on April 5, 2019.

Sinterama is the European leader in the production of colored polyester yarns. The company is vertically integrated and covers the entire production process that goes from polyester chips to yarns. Sinterama products are considered specialties and used in the production of textiles for automotive, home textile, clothing, and woven label sectors. Sinterama generated approximately €130 million of revenues and €11 million of EBITDA in 2018.

In 2015 Sinterama, following a distress situation due to both a general economic downturn and mismanagement in the development phase, started a restructuring plan that successfully completed in 2016.

Sinterama signed a long-term senior debt facility of €21.5 million and a long-term subordinated debt facility of €7.0 million in order to refinance its existing long-term debt. In addition, the bilateral agreements reached with short-term debt's lenders include a rebalance of approximately €27 million short-term credit lines among invoice discounting and import financing and an overall reduction of its financial cost.

Leonardo & Co., in association with Houlihan Lokey, served as the exclusive financial advisor to Sinterama, assisting the client in structuring and negotiating every aspect of the deal, allowing Sinterama to obtain the required capital structure with attractive pricing and flexibility.