On the heels of a weak 4Q19, APTIM sold a USD 153m package of receivables tied to its US Virgin Islands business for USD 71.3m in cash proceeds, according to two sources familiar with the matter.
Although the figures imply a more than 50% discount to principal value, the company expects additional proceeds in the future from the receivables purchase agreement, one of the sources said.
APTIM plans to use proceeds from the sale for general corporate purposes, the sources added.
In turn, APTIM’s revolver capacity shrunk to roughly USD 20m compared to USD 130m before the sale. As of 1 April, the company’s total liquidity now stands at USD 168m, considering USD 148m of cash and the updated revolver capacity, compared to USD 206.4m of liquidity at year-end.
For the quarter ended 31 December, adjusted EBITDA came in at USD 7.2m, before adjusting for the cap on addbacks. Post-cap, the company generated USD 0.7m in adjusted EBITDA for the quarter, compared to USD 10.4m of adjusted EBITDA in 4Q18, according to the sources.
On an LTM basis, the company’s pre-cap adjusted EBITDA declined 12.6% to USD 65.6m from USD 75.1m in 2018. Post-cap on addbacks, the company generated USD 22.7m in adjusted EBITDA for 2019, compared to USD 27.3m of adjusted EBITDA in 2018, they said.
As of 31 December, the company is 22.7x levered through USD 515m of total debt and USD 22.7m post-cap adjusted EBITDA.
APTIM was created as a standalone company in mid-2017 when Veritas acquired Chicago Bridge & Iron’s Capital Services business, as CB&I divested assets to tackle near-term maturities and looming covenant breaches.
The company’s USD 515m 7.75% secured notes due 2025 last traded yesterday (8 April) at 34.25, up from a low of 31.5 on 24 March, but down from 57 in early March, according to MarketAxess.
APTIM did not respond to a request for comment.