Apollo et al. to invest €278m in listed Latécoère

The financial restructuring, expected to be approved by shareholders by 30 June, will see Apollo and Monarch secure a 25.1-45.9% stake in Latécoère. The US firms will invest alongside a number of Latécoère's existing lenders, which together represent 88% of the loans provided to the business.

Also supporting the company in the capital increase will be Paris-based buyout house Salvepar.

The €278m capital increase is expected to take place in two rounds, with the first €55.6m capital increase coming via the creation of 6.9m new shares, followed by an additional €222.5m provided in accordance with preferential subscription right of the company's shareholders.

With its market cap currently sitting at €105m, Latécoère is listed under the ticket LAT on the Paris stock exchange's Eurolist C category, for companies with a market valuation below €150m.

The aeronautics business intends to use €178m of the fresh capital to pay back its existing €278m syndicated loan, lowering the its current annual €12.5m in debt obligations to €5m. Meanwhile, the remaining €100m will be dedicated to boosting growth and performance. 

Company
Founded in 1917, Groupe Latécoère is an aeronautics company that manufactures aircraft fuselage and doors, as well as onboard electrical wire harnesses and avionics bays.

Headquartered in Toulouse, France, the business employs 4,815 people across 10 countries and posted turnover of €664.1m in 2014.

People
Frédéric Michelland is chairperson at Latécoère, while Pierre Gadonneix is chairperson of the company's supervisory board.

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