Exide Technologies booked USD 666m of revenue for the quarter, a 12% decline year-over-year, while EBITDA increased to USD 37.9m, compared to USD 36.5m in fiscal 3Q19, according to two sources familiar with the situation.
During the quarter, the company converted its USD 290m 7.25% PIK 1.5 lien notes due 2027 to equity, the sources said. Pro forma the conversion, leverage shrinks to 7.3x from 9.7x at 2Q20, based on USD 124.7m of LTM EBITDA and USD 910m of pro forma total debt.
Exide’s capital structure still contains a USD 150m 4.5% PIK/10.75% cash super-priority note due 2021, a USD 375m 11% PIK/3% cash exchange priority note due 2024 and a USD 159m 11% PIK/3% cash first lien note due 2024.
Excluding pension and environmental liabilities, the company generated USD 12.2m of free cash flow in the quarter, based on USD 9.3m of cash interest expense and USD 16.3m of capex, one of the sources added.
As of 31 December, Exide’s liquidity totaled USD 88m through USD 32m of cash and USD 56m of revolver availability.
The company will hold a call on 2 March to discuss the results, on which investors are hoping for an update on the previously announced sale of the European segment or more than 60% of the company’s business, the sources said.
Messages left for Exide officials were not returned.