Schur Flexibles term loan plummets as company hires advisers

The term loan due 2028 from Schur Flexibles Holding GesmbH is quoted in the mid-70s today, after having fallen as far as the 60s from par earlier this week, after the company is understood to have hired advisers ahead of a potential restructuring, according to market sources.

PJT Partners and Allen & Overy are said to have been hired to advise the company, while sponsor-shareholders B&C and Lindsay Goldberg are said to have provided a €23 million loan to support the company’s liquidity needs. Sources add that the intervention also brought changes to senior management.

Lindsay Goldberg agreed to sell an 80% stake in Schur, which is a flexible packaging firm, to B&C in May 2021, with the U.S. private equity company holding the remainder. The firm followed with a €475 million term loan in September priced at E+475 with a 0% floor. That deal refinanced debt and supported general corporate purposes, and had been marked consistently above or at par since.

Last year’s deal also came with a €100 million revolver, and the financing replaced the firm’s debut in the publicly syndicated market that closed as a €275 million facility in December 2018 at E+600 after a difficult syndication. Ratings are B/B2 (issue and issuer) with a 3 recovery rating.

Schur is the fourth-largest flexible packager in Europe and its products are used in the food, pharmaceutical, film specialities and aroma protection sectors.

B&C and Lindsay Goldberg both declined to comment when contacted by LCD.