CONTECH Announces Financial Restructuring Plan to Reduce Debt and Improve Balance Sheet

CONTECH Construction Products Inc., a provider of innovative site solutions and storm water management, announced that it has successfully completed a balance sheet restructuring with its debt and equity holders, which reduces the its outstanding debt by approximately $240 million and greatly enhances its financial position to continue to invest in innovation and pursue meaningful growth opportunities. Additionally, the Company disclosed that as part of the restructuring, Goldman Sachs Mezzanine Partners (GSMP) will become CONTECH’s majority owner. Funds advised by Apax Partners will continue to hold an equity stake in the business.

“This balance sheet restructuring was essential for CONTECH as it greatly reduces our debt, increases our liquidity and puts us in a stronger position to invest in our future,” said Ron Keating, president and CEO of CONTECH. “We are grateful to have the support of Goldman Sachs, our equity partner Apax Partners, our lenders and all other owners of our business. We look forward to working with them over the coming years, as we drive innovation throughout the industry and aggressively go after new markets and key customer accounts, while continuing to expand our global footprint.”

Under the terms of the balance sheet restructuring, CONTECH has permanently removed 100% of the principal amount and accrued interest owed on its mezzanine notes due 2014, representing a total debt reduction of approximately $240 million. Additionally, the company’s senior secured credit facility with Wells Fargo Bank and a syndicate of lenders also has been amended with modified financial covenants and revised interest rates. The company’s revolving credit facility has been extended to Jan. 31, 2013, the same date as its term loan.

Source: CONTECH Construction Products Inc.