Belron launches new term loans of EUR 1.3 billion equivalent
Belron is launching on a best effort basis a syndication in the institutional loan market for new “Term Loans B”(1) of EUR 1.3 billion equivalent.
Two thirds of these new loans are expected to be denominated in USD and the balance will be in EUR.
The proceeds of the new Term Loans will be used mainly to refinance the existing US Private Placement (USPP) instruments issued by Belron, reimburse the existing shareholder loans, pay an extraordinary dividend (approximately €450m) to the current shareholders of Belron, and cover fees and transaction costs related to the refinancing.
Alongside this new financing, a new revolving credit facility is expected to replace the existing one and provide the necessary liquidity to Belron.
This transaction will optimise Belron’s capital structure whilst maintaining full flexibility for its strategic options. The refinancing should extend Belron’s debt maturity profile as the new Term Loans are expected to have a 2024 maturity.
Belron’s average net debt/EBITDA(2) multiple should increase from 2.56x at the end of June 2017 to 4.25x as a result of this operation.
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.
1 Term Loans B “Bullet”
2 EBITDA is defined as earnings before interest, taxes, depreciation and amortization for the last twelve months (1 July 2016 - 30 June 2017).
End of press release
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. 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.
Axel Miller, Chief Executive Officer
Arnaud Laviolette, Chief Financial Officer
Pascale Weber, Financial Communication - Tel: + 32 (0)2 536.54.39