Centerbridge Partners LP is in talks to inject as much as 75 million euros ($102 million) into Apcoa Group GmbH to help the German car park operator finance a potential cash outflow this month, according to two people with direct knowledge of the negotiations.
The investment firm is discussing the financing with Apcoa’s lenders, said the person, who asked not to be identified because the talks are private. Apcoa would need consent from all its lenders if it obtains debt ranking above existing obligations.
Apcoa operates car parks including those at Gatwick and Heathrow airports and is seeking to replace about 640 million euros of loans maturing next year. It told creditors on Oct. 29 of a “possible temporary cash outflow of about 20 million euros”, Tilman Kube, a spokesman for the Stuttgart-based business, said in an e-mailed statement.
The business has stable liquidity and “on an operational level the company is doing well and has entered its strongest quarter in terms of cash generation,” Kube wrote. He declined to comment on Centerbridge’s potential investment.
Centerbridge, based in New York, has bought pieces of Apcoa’s debt from other lenders and now holds at least 200 million euros of the loans, the people said. Officials at Centerbridge didn’t respond to telephone calls and an e-mail seeking comment on Apcoa.
Eurazeo (RF) SA paid 885 million euros in 2007 for a majority stake in Apcoa backed by 660 million euros of loans, according to data compiled by Bloomberg. It renegotiated the terms of its loan pact in December 2009, according to a Eurazeo annual report. Lazard Ltd (LAZ) and Rothschild are advising the private-equity company on the refinancing, Apcoa’s Kube wrote.
Apcoa generated 66 million euros of earnings before interest, taxes, depreciation and amortization in 2012, according to a statement on Eurazeo’s website. Earnings totaled 25.5 million euros in the first half of 2013.
Centerbridge has invested about 2.5 billion euros in European companies, a person with knowledge of the company has said. It agreed to invest 25 million euros to help restructure the debt of ATU Auto-Teile-Unger, the German car-repair business said last month.