Prima Sole Components in Talks With Investment Funds for Sale-Leaseback Operations on Real Estate Assets; Debt Rescheduling Negotiations Continue

Relevant Document:
2022 Report

Italian automotive components group Prima Sole Components, or PSC, is in talks with several investment funds regarding sale-leaseback operations involving its real estate assets, particularly its plants, sources familiar with the situation told Reorg.

The company, advised by Rothschild and law firm Gatti Pavesi Bianchi Ludovici, is currently in debt negotiations with its creditors, with the talks expected to involve a rescheduling of the debt and no haircut, the sources added.

Once the debt workout is completed, PSC might consider a M&A strategy, sources suggested.

PSC, which designs and manufactures interior and exterior automotive parts, started to underperform due to the Covid-19 pandemic and was further hit by the global chip shortages and surging energy costs following Russia’s invasion of Ukraine.

At the end of 2022, PSC had around €348 million of bank debt, including a €205 million 2027 loan provided by banks Intesa Sanpaolo, BNP Paribas and UniCredit and 90% guaranteed by Italys’ export credit agency SACE.

The company ended 2022 with €305 million of revenue, €1.2 million EBITDA (margine operativo lordo) and €28 million of liquidity. Total debt reached €529 million, which included €348 million in bank debt and €11.8 million in financing from Anthilia Capital Partners SGR, which is 90% guaranteed by SACE and should start amortizing at the end of 2024.

Below is an overview of the company’s bilateral lines including duration (durata) and maturities (scadenza):
 

Based in Frosinone, south of Rome, the company is owned by the Stirpe family, which also owns Frosinone Calcio, the local football team.