Cooper-Standard Holdings Inc. said it hired Goldman Sachs & Co. to help it analyze "potential alternatives for refinancing its capital structure," prompting a negative reaction from investors.
The automotive sealing and fluid delivery parts supplier saw its stock value plunge 20 percent to about $4 per share. That's less than a fifth of its price per share at the start of the year as financial struggles amid market volatility have led to a steady slide.
The company issued a statement June to Crain's Detroit Business, a sister paper of Plastics News, offering more specificity on why the supplier tapped the New York City investment banker.
"Goldman Sachs has been retained as an adviser to assist us with refinancing portions of our debt to extend the maturity dates," Chris Andrews, senior director of communications, said in an email. "Goldman Sachs is a long-term banking partner for the company. Cooper-Standard continues to maintain strong liquidity of $395.6 million, as of March 31, 2022."
Despite losing money due to production stoppages, parts shortages and inflation, the company said it expects its liquidity position will "provide sufficient resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future."
Cooper-Standard is No. 35 in the most recent Plastics News ranking of pipe, profile and tubing processors in North America with an estimated $140 million in annual sales in the region.
Cooper-Standard generates more than half of its business from Detroit 3 customers, with Ford Motor Co. accounting for about 24 percent of its revenue in 2021, according to the company's annual report.