Cooper Standard shares dip on 'refinancing' move

Northville, Michigan - Shares in Cooper-Standard Holdings Inc. fell sharply after the company announced that it was evaluating “potential alternatives for refinancing its capital structure.” 

Goldman Sachs is to assist as financial advisor in the analysis and evaluation process, the supplier of automotive sealing, fuel, brake and fluid-transfer systems said 14 June 

As of 31 March, Cooper Standard had total liquidity of $395.6 million (€380.3 million), including availability under its amended senior asset-based revolving credit facility. 

Cooper Standard added that it had recently received $51 million in cash payments from the US Internal Revenue Service for tax refunds related to net operating losses. 

Based on current market expectations, the company “expects its current liquidity position will provide sufficient resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future.”

Cooper Standard’s share price fell 27%, from $5.06 on 14 June to $3.71 the following day; its announcement apparently adding to trader concerns about the current direction of the automotive market.