Brussels - Foamer Recticel SA/NV launched an offer for Euro 50 million of subordinated convertible bonds, due 2017, on 11 July. The Belgian polyurethane foam group said it has an option to increase this to Euro 57.5 million. The company will use the proceeds of this offer to repay outstanding debt. Recticel expects the transaction "to significantly improve its debt maturity profile and strengthen its balance sheet," the firm's statement said. This is in line with Recticel's goal of optimising its financing structure: it should provide "increased financial flexibility for Recticel's future development," the company added.Recticel has been struggling with its automotive interiors business, which was due to be sold this year, until the prospective buyer Nordwind Capital pulled out in February. The group is now keeping this division, which overall has positive earnings before tax, depreciation and amortisation, but is loss-making in the US where the automotive market is in difficulties.Recticel closed the 2006 financial year with a net loss from writing off the Euro 31 million US assets of this division, with a further Euro 7 million for future rent and reorganisation in America. Its group sales for 2006 were nearly Euro 1500 million. Recticel operates globally, with a major focus in Europe, and has about 100 facilities in 26 countries. It manufactures foam filling for seats, mattresses and slat bases of top brands, as well as rigid polyurethane insulation for construction, materials for interior comfort for cars and an extensive range of other industrial and domestic applications."
