Latecoere Stock Surges on Refinancing Agreement With Lenders

Latecoere SA (LAT) surged the most since March in Paris trading after saying it refinanced most of its debt with a group of banks as part of a restructuring program.

Latecoere gained as much as 1.49 euros, or 21 percent, to 8.77 euros, and traded at 8.5 euros as of 11:30 a.m. in Paris. The stock has gained 21 percent so far this year, valuing the Toulouse, France-based company at about 73.2 million euros ($95.5 million).

The French company, which is the world’s largest independent aircraft-door supplier, will refinance 319.8 million euros of debt, which includes 96 percent of its bank debt, as well as 60 percent of its convertible bonds. The agreement will reduce the potential dilution for shareholders, and secure resources to finance future development programs, the company said.

Latecoere, which sells doors, wiring and engineering services to all major airframe makers, has said in recent weeks that it may choose to remain independent as its finances improve, while continuing its search for a partner. The company started to look for an investor or a combination with another aerospace supplier more than a year ago to gain critical mass as investment in new planes increases.

Latecoere, whose largest customers are Airbus (EAD) SAS and Brazil’s Embraer SA (EMBR3), gets about 56 percent of sales from plane structures. Latecoere supplies doors for four Boeing Co (BA) . 787 Dreamliners each month. The company also does wiring and engineering.

To contact the reporter on this story: Sabine Pirone in London at spirone@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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