CEVA Logistics has won support from bondholders for a debt-for-equity swap that will reduce the troubled supply chain management company’s consolidated net debt by 1.2 billion euros ($1.57 billion).
The U.K.-based company said it had received valid tenders for $674 million of debt, due 2018; $574 million, due 2020; and $113 million and 2 million euros, due 2014.
The recapitalization is expected to halve annual interests payments to about 135 million euros ($177 million).
CEVA, which is owned by U.S. private equity group Apollo Global Management, recently pulled plans for a $400 million initial public offering in New York in May, citing its unfavourable financial performance.
Standard & Poor’s and Moody’s cut the corporate credit ratings of CEVA Group, the parent of CEVA Logistics, in April, in response to the recapitalization of its balance sheet.
Standard & Poor’s said there was a risk CEVA could file for bankruptcy if it did not receive the necessary consent from its note holders to implement the refinancing plan.
CEVA Logistics posted record revenues of 7.2 billion euros ($9.4 billion) in 2012, an increase of 4.8 percent on the previous year. Adjusted earnings before interest, tax, depreciation and amortization, declined, however, by 21.8 percent to 251 million euros ($328.8 million).