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Spanish car interiors manufacturer Grupo Antolin’s debt has declined by about 10 points since November. The company is struggling with project delays in the U.S. and China, lower light vehicle production in Germany and from the knock-on effects of Jaguar Land Rover’s sales volume decline, sources told Reorg.

The group’s €400 million bond paying 3.25% due in 2024, yields about 6% and declined to 88 from about 97 in the beginning of November. Antolin’s €250 million note due in 2026 paying 3.375% are yielding about 7% having declined to 80 from about 90 at the beginning of November.

On Nov. 26 the company lowered its guidance for the full-year 2018 to €5 billion in revenue from €5.1 billion, the EBITDA margin guidance was lowered to 7% to 7.25% from 8.25% guidance given in September. Capex was guided at 5.8% of revenue, compared with a previous indication of 6.5%. This was driven by emerging market currency weakness, Brexit uncertainty, and project delays in Shelby, Alabama and Tianjin.

In the third quarter the company reported that EBITDA slumped by 33.3% year over year, while sales rose 3.1% year over year to €1.19 billion.

The decrease in EBITDA was primarily attributable to sales declines in Europe as well as new facilities and launch costs across Europe and U.S. which hurt staff costs and supplies, the company said. The negative effect of exchange rates represented approximately €3.5 million of lower EBITDA.

Management said the €17.1 million decline in U.K. sales in the third quarter, was linked mainly to lower Jaguar Land Rover sales volumes and represented a €2.5 million negative impact on EBITDA. More recently, on Jan. 10, 2018, Jaguar Land Rover announced £2.5bn in cost reduction and cash-flow improvements.

The scheduled closure of our Rasttat facility as well as the 14.9% decline in German light vehicle production in the third quarter, represented a negative effect of €6 million on EBITDA in the third quarter, according to the company.

At the end of the third quarter Antolin had €165.7 million of cash available as well as revolving credit facilities of €228.2 million. It has no near-term maturities.

In the first three quarters of the year EBITDA decreased by 28%, to €254.1 million from €353 million a year prior. Of this decline, €61.7 million or 62.4% occurred in first quarter as new facilities and products were launched. Additionally, the negative effect of exchange rates in the first three quarters represented approximately €12.7 million of lower EBITDA.

Net cash generated by operating activities was €86.7 million in the nine months ended Sept. 30, 2018, compared with €151.9 million a year prior. The company reported a net leverage of 2.93x

The group’s capital structure is below:
 

As of Sept. 30, 2018, Antolin had approximately €1.3 billion of financial debt, including €4.6 million in soft loans with cost (loans granted to the company principally by certain Spanish public bodies at below market interest rates).

The company has 151 factories in 25 countries, employs about 28,000 people and has a business volume of €5 billion in 2017.
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