| Treofan posts EBITDA of EUR 19.3m in first half 2006, up 25% |
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Raunheim, September 29th, 2006 - Treofan, Europe's biggest BOPP film manufacturer, postedEUR 19.3m in EBITDA in the first half of 2006, a 25% improvement over the first half of 2005, demonstrating the results of an extensive operational turnaround pursued over the past year. The improvement was driven by a significant reduction in fixed costs, and continuing expansion in operating margin from input cost pass-through and an improving product mix. On July 28th, Treofan completed a refinancing of substantially all of its senior bank and mezzanine debt, reducing its leverage and cost of capital, substantially increasing liquidity, and giving the company a more stable and flexible capital structure. The refinancing includes a new EUR 60m secured revolving credit facility and EUR 170m in second lien notes due 2013, issued by Treofan Germany GmbH & Co KG. Additionally, Treofan has refinanced its remaining mezzanine debt through the issuance by Treofan BV of approximately EUR 56m in total value of preferred stock, reducing the company's leverage and increasing its equity base. "We have lowered our fixed costs substantially and improved our product mix and profitability. This is reflected in the significant improvement in our first half EBITDA performance," said Peter A. Briggs, CEO of Treofan. "With our restructuring program showing results and our strengthened capital structure, we are now investing to make Treofan as productive as possible, and to secure its market leadership going forward. We are now focused on growth." Other highlights include: Higher-margin specialty segment now accounts for 56% of sales, up from 50% in the first half of 2005 - ahead of the company's targeted mix for 2006.
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