WireCo WorldGroup Inc, one of the world’s largest manufacturers of steel and synthetic rope, is working with investment bank Goldman Sachs Group Inc (GS.N) to explore rescue financing options, according to people familiar with the matter.
The move highlights WireCo’s exposure to corporate clients in the energy, mining and maritime sectors, which have been hit hard by the drop in oil and commodity prices, as well as concerns over the strength of the global economy.
WireCo has asked Goldman Sachs to evaluate several financing options, including the possibility of selling a big chunk of equity in the company, which is majority owned by private equity firm Paine & Partners, the people said this week.
The sources asked not to be identified because the deliberations are confidential. Paine & Partners and Goldman Sachs declined to comment, while a WireCo spokeswoman did not respond to a request for comment.
WireCo told investors in its bonds on Thursday that it is in active dialogue with various sources of financing, and that it expects to complete a refinancing well ahead of its 2017 maturities, according to a presentation posted on its website.
Based in Kansas City, Missouri, WireCo makes wire ropes, and electromechanical cable used in heavy lifting, pulling, mooring, supporting and suspension. It operates 24 manufacturing facilities in eight countries.
The company reported sales of $684 million and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $106.4 million in 2015, compared with sales of $856.8 million and adjusted EBITDA of $151 million a year earlier. Its debt as of end-December totaled $808.8 million, net of cash.
Paine & Partners agreed to acquire WireCo from private equity firm KPS Capital Partners LP in 2006 for an undisclosed amount.
(Reporting by Greg Roumeliotis in New York; Editing by Alan Crosby)