Lecta signs recapitalization agreement

Lecta Group has signed a lock-up agreement with its key stakeholders to support a comprehensive recapitalization transaction that will reduce debt by approximately 400 million EUR, enhance liquidity and facilitate the company's ongoing transformation process.

The agreement with the group's largest financial creditors and shareholders provides Lecta with the necessary support to implement the recapitalization, which is expected to close during Q1 2026.

The recapitalization will result in substantial deleveraging, reducing pro forma group net leverage to below three times. The group's liquidity position will be enhanced by approximately EUR 100 million in financing available to the Specialties business unit to support operational transformation and working capital requirements.

Following execution of the lock-up agreement, Lecta will have access to approximately EUR 20 million in interim liquidity from its key stakeholders, which will further enhance the Group's liquidity position upon implementation of the recapitalization.

'We are grateful for the continued support of our key stakeholders and their strong commitment to Lecta,' stated Javier Abad Marturet, chairman of Lecta. 'This milestone represents an important step toward securing a sustainable, long-term plan for the Group. We look forward to working closely with our stakeholders to support execution of the Group's strategy and unlock its full potential.'

Gilles Van Nieuwenhuyzen, CEO of Lecta, commented: 'We are very pleased that Lecta now has the support from its key financial stakeholders to move towards implementation of the recapitalization. The significantly de-levered capital structure and new liquidity will provide Lecta with a stable financial footing to facilitate the Group's ongoing transformation process and enable the management team to focus on delivering best-in-class paper products to our customers and cost competitiveness.'

The recapitalization will also result in material reduction in cash interest payments and improved cash flow generation, as well as completion of the Group's ongoing corporate reorganization into independently managed and financed business units.

Holders of the New Money Notes and Senior Secured Notes will have the ability to participate in the lock-up agreement. Detailed terms of that potential participation and of the transactions contemplated by the lock-up agreement will be provided in the following weeks and by January 31, 2026.