Belron has successfully allocated its new term loans of EUR 1.3 billion equivalent

Belron has successfully allocated its “Term Loan B” of EUR 1.3 billion equivalent and refinanced its revolving credit with a new facility of EUR 280 million (the “Financing”). The Financing is expected to close on 7 November 2017.

The key definitive terms of the TLB are the following:

  • Total amount of EUR 1.3 billion split into USD 1,025 million and EUR 425 million

  • Maturity of 7 years

  • Spread in USD of Libor + 250 bps and in EUR of Euribor + 275 bps

  • Issue price of 99.875%

  • Rating of the issue: Ba3 for Moody’s and BB for S&P

As previously announced, the proceeds of the new Term Loans will mainly be used to refinance the existing US Private Placement (USPP) instruments issued by Belron, reimburse the existing shareholder loans, pay an extraordinary dividend (approximately €450 million) to the current shareholders of Belron, and cover fees and transaction costs related to the refinancing.

This transaction optimises Belron’s capital structure whilst maintaining full flexibility for its strategic options. The refinancing extends Belron’s debt maturity profile.

Belron’s average net debt/EBITDA multiple increases from 2.56x at the end of June 2017 to 4.25x as a result of this Financing.

This process is fully aligned with D'Ieteren's intention to find a suitable minority partner for Belron.

The extraordinary dividend that D’Ieteren will receive from Belron following this refinancing will allow it to broaden its activities and pursue its long-term strategy which aims to invest in other activities with high growth potential.  

End of press release

 

Group profile

In existence since 1805, and across family generations, D’Ieteren seeks growth and value creation by pursuing a strategy on the long term for its businesses and actively encouraging and supporting them to develop their position in their industry or in their geographies. The group has currently three activities articulated around strong brands:

  • D'Ieteren Auto distributes Volkswagen, Audi, SEAT, Škoda, Bentley, Lamborghini, Bugatti, Porsche and Yamaha vehicles in Belgium. It is the country's number one car distributor, with a market share of around 22% and 1.2 million vehicles on the road at the end of 2016. Sales and adjusted operating result reached respectively EUR 3.1 billion and EUR 75.8 million in FY 2016.

  • Belron (94.85% owned) makes a difference by solving people’s problems with real care. It is the worldwide leader in vehicle glass repair and replacement, trading under more than 10 major brands including Carglass®, Safelite® AutoGlass and Autoglass®. In addition, it manages vehicle glass and other insurance claims on behalf of insurance customers. Belron is also expanding its services to focus on solving problems for people who need assistance with repairs to their vehicles and homes. Sales and adjusted operating result reached respectively EUR 3.3 billion and EUR 190.7 million in FY 2016.

  • Moleskine

    (100% owned) is a premium and aspirational lifestyle brand which develops and sells iconic branded notebooks and writing, travel and reading accessories through a multichannel distribution strategy across 102 countries. Sales and operating result reached respectively EUR 145.2 million and EUR 34.0 million on a stand-alone basis in
    FY 2016.

 

Contacts

Axel Miller, Chief Executive Officer

Arnaud Laviolette, Chief Financial Officer

Pascale Weber, Financial Communication - Tel: + 32 (0)2 536.54.39

E-mail: financial.communication@dieteren.be – Website: www.dieteren.com