Honsel senior lenders, RHJ International agree to restructuring terms

By Caroline Salls

Pittsburgh, April 30 - A number of Honsel's senior lenders have reached an agreement with RHJ International SA on a future capital structure to be implemented through a restructuring of the Honsel group, according to an RHJ news release.

RHJ International said it has begun seeking the consent of Honsel's other creditors.

In addition, Honsel's creditors have agreed to extend their standstill agreements originally announced in December to May 22 to give the creditors enough time to evaluate and approve the proposed restructuring.

Under the proposed restructuring, RHJ International will invest €50 million into Honsel in exchange for a controlling 51% stake in Honsel's equity.

As part of the restructuring, Honsel's lenders will agree to exchange their current term debt of roughly €510 million for €110 million and €30 million of new senior and mezzanine term debt and 49% of Honsel's equity.

Following the restructuring, RHJ said Honsel's existing €40 million revolving credit facility, as well as the €40 million of financing from RHJ and Honsel's customers, will remain in place.

In addition, the investor said Honsel's short-term liquidity needs will be bridged by €10 million of secured debt provided by a key supplier and by up to €10 million of further financing provided by RHJ or another third-party investor.

Honsel is a producer of light metal components primarily for the automotive industry that is 82% owned by Brussels-based RHJ International.

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