Anchor Glass EBITDA falls in 1Q21, driven by higher costs
Anchor Glass booked USD 16m of adjusted EBITDA in 1Q21, compared to USD 29.7m in 1Q20, according to two sources familiar with the matter.
Revenue slipped 4.5% on the year to USD 136.6m from USD 143.6m, driven by high freight, raw material and energy costs, the sources added.
For the same period, the CVC Capital Partners-owned glass packaging producer’s net first lien leverage totaled 6x, compared to 5.2x last quarter, the sources said. Total net leverage totaled 6.8x, compared to 6x last quarter.
Anchor’s win-back contract with Dr Pepper Snapple Group expired in 2020, as Snapple partially transitioned to plastic bottles from glass bottles, as reported.
The company has signed on 10-15 new customers, but the new volumes have not yet replaced the volume loss expected from the expiration of the Snapple contract, as reported. If the company doesn’t fully replace the exiting Snapple volumes, EBITDA will likely fall and leverage will increase, sources said.
Anchor Glass’s USD 150m Libor+775bps second lien term loan due 2024 was today at 50.422/55, in line with recent levels, according to Markit.
The USD 647m Libor+275bps first lien term loan due 2023 was last quoted today at 91.391/92.641, up slightly from trades at 90.042/91.111 on 19 May.
CVC declined to comment. Anchor Glass did not respond to a request for comment.
Farhin Lilywala 