(Bloomberg) -- German car parts supplier Standard Profil Automotive GmbH hired advisers as it prepares to refinance its debt amid a broader automotive industry crisis.
The company is working with the local affiliate of consulting firm Teneo to review options ahead of a €275 million ($295 million) bond maturing in April 2026, according to a person familiar with the matter. The news was first reported by financial media platform Octus, previously known as Reorg.
Teneo declined to comment while a representative for Standard Profil didn’t immediately respond to requests for comment outside normal business hours.
Standard Profil’s bonds have been under pressure as demand for new cars weakens. The company reported a 15% drop in earnings before interest, taxes, depreciation and amortization in the second quarter, while revenue fell 6.6% due to a slowdown in electric vehicle sales.
The company already held meetings with investors to discuss the refinancing of bonds in July. As talks didn’t lead to a deal, bond prices dropped into distressed territory. The notes were indicated at 75.2 cents on the euro on Friday, according to data compiled by Bloomberg.
--With assistance from Libby Cherry.
(Adds Teneo declining to comment in third paragraph.)
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