Exide Confirms Hiring Restructuring Specialist

In an effort to maximize the value of the company for all stakeholders, lead-acid battery maker Exide Technologies (Nasdaq: XIDE  ) announced that it has hired the financial advisory firm of Lazard to advise the company on financing alternatives. The stock tumbled 48% on the news.

Exide is one of the world's largest producers and recyclers of lead-acid batteries primarily selling to aftermarket retailers, though it also counts OEMs among its client list. Replacement batteries represent about 78% of its transportation segment revenues and thus approximately 48% of its total revenues.

Analysts have expressed concern that with $55.8 million worth of floating rate convertible senior subordinated notes coming due this year, it might not have the financial wherewithal to meet its obligations. However, concurrent with hiring the financial advisor, Exide also noted that it expects its fiscal 2013 fourth-quarter free cash flow will be approximately $50 million, exceeding the guidance it gave last December of $30 million. It will also have more than $230 million in total liquidity, including cash and all available credit lines.

Exide says it will not make any further announcement about the strategic review process until it's finished.

XIDE Debt to Equity Ratio Chart

Source: XIDE Debt to Equity Ratio data by YCharts.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2347926, ~/Articles/ArticleHandler.aspx, 9/20/2014 10:07:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement