Lenzing's €300 Million Reset: Fibre Maker Strikes Refinancing Deal as Berenberg Cuts to Hold

Lenzing closed at €14.02 on its first ex-rights day, as the fibre maker seeks €300m and Berenberg downgraded the stock to Hold.

Lenzing shares closed Friday at €14.02, down 2.1%, as the stock traded ex-rights for the first time and investors digested a sweeping recapitalisation alongside a broker downgrade. The decline reflected a mix of the mechanical rights adjustment and a more cautious stance from Berenberg, which pulled its rating back to "Hold" from "Buy."

The Austrian fibre producer is seeking a gross €300 million through the issuance of 34,756,362 new ordinary shares, priced at €8.65 apiece. Existing holders are being offered a 10-for-9 subscription ratio. Measured against the theoretical value of the stock once the subscription right is stripped out, that issue price represents a 42.50% discount.

Anchor Backers and a Refinancing Package

Support for the placement looks largely secured. Core shareholders B&C Group and Suzano have committed to subscribing, and Oberbank has also pledged to exercise its rights. Beyond the equity raise, Lenzing has agreed a broader refinancing package with its lenders, including a new credit facility of up to €300 million. Maturities on existing agreements have been pushed out to 2030.

The fresh capital is intended to shore up the balance sheet and bankroll a strategic overhaul branded "Grow Nonwovens, Reset Textiles" — a pivot toward higher-margin specialty fibres and nonwovens as the traditional textile market stays tough.

Berenberg's Downgrade and the Earnings Gap

Berenberg's move came the same day. The private bank cut its price target to €17 from €29.50, citing the absence of any earnings uplift from higher viscose and cotton prices as well as anticipated restructuring provisions. The persistent operational softness raises the urgency of stabilising the balance sheet with new money, and management is counting on full coverage of the capital measure to preserve its financial room for manoeuvre.

The Timetable Ahead

For existing shareholders, the subscription window opens Tuesday and runs through 20 October 2026. Trading in the subscription rights on the Vienna Stock Exchange is expected to begin on 6 October and, according to media reports, continue through 14 October. The new shares are slated for inclusion in trading on 23 October, subject to formal entry in the commercial register. Investors will get a clearer read on operations on 5 November 2026, when Lenzing publishes its third-quarter results.