Ink maker Flint Group has withdrawn its request for $1.3 billion in debt refinancing and the initial public offering it planned for this summer, according to a Debtwire report carried by Financial Times' Website yesterday.
The news service cited sources familiar with the matter and a loan trader, and said the decision by Flint owner CVC Capital Partners Ltd. was influenced by "freefalling equity markets and sovereign debt uncertainty."
London-based private equity investor CVC Capital Partners acquired family-owned Flint Ink of Michigan in 2005 in an all-debt deal, later merged it with two already-merged European ink makers, then moved its headquarters to Luxembourg. The world's second-biggest printing ink maker, Flint recorded $3.4 billion in sales last year. Listing Flint on the Frankfurt Stock Exchange would have reduced debt "and assured CVC a handsome return," Debtwire reported.
One of its sources told Debtwire — a unit of Financial Times Group — that Flint is slated to address lenders on a June 3 quarterly earnings update, and that the company will need revised refinancing in order to pursue listing again.
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