Printing ink maker Flint nears debt deal ahead of planned sale -sources

DIC

27/05/2020 13:25

By Arno Schuetze
    FRANKFURT, May 27 (Reuters) - The world's second-largest
printing ink maker, Flint Group, is nearing a debt deal seen as
a pre-condition to proceed with a sales process that its owners
launched last year, people close to the matter said. 
    Flint Group has seen its supply chains affected and sales
decrease during the coronavirus pandemic and expects its 2020
earnings before interest, tax, depreciation and amortization to
fall from the 266 million in 2019, the sources said. One source
said it may reach 220 million euros this year, while another
said to expect a higher figure. 
    The company, owned by Goldman Sachs' private equity arm and
U.S.-based conglomerate Koch Industries, has engaged with its
lenders to put its financing on a new footing, the people said. 
    It is expected to agree a so-called extend and amend deal
for its 1.7 billion euros ($1.86 billion) in liabilities within
the next two to three weeks, the people said, adding this would
likely see an extension of maturities by two years at slightly
better terms. 
    Flint, the global No.2 after Sun Chemical  4631.T , was put
up for sale late in 2019, a process halted by the pandemic.
    It could be restarted soon, two of the sources said, while
another cautioned that the owners may allow for more time before
putting it on the block again. 
    Flint Group was created by buyout firm CVC through a merger
of former units of BASF  BASFn.DE  and Akzo Nobel  AKZO.AS  with
U.S.-based Flint Ink and sold to Koch and Goldman in 2014 at a
valuation of more than 2.2 billion euros.
    The Luxembourg-based group makes the bulk of its profit in
the packaging industry, while inks for the printing industry
account for the rest. 
    The two units may eventually be sold to different buyers,
one of the people said, adding the businesses are expected to
appeal to peers as well as private equity groups.
    Goldman Sachs and JPMorgan are advising the Flint owners on
the situation, the people said.
    The banks declined to comment, while Koch was not available
for comment.
    
($1 = 0.9140 euros)

 (Reporting by Arno Schuetze
Editing by Michelle Martin and David Evans)
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))