Belron launches a new loan of EUR 400 million equivalent
Belron is launching on a best effort basis a syndication in the institutional loan market for a 7 year “Term Loan B” of EUR 400 million equivalent (the “Term Loan”).
The Term Loan is intended to be denominated in USD and would be issued by Belron Finance US LLC.
The proceeds of the Term Loan would be used to pay a dividend to the shareholders of Belron.
This transaction occurs amid Belron’s strong operational performance and rapid deleveraging since the capital structure refinancing in October 2017, with a net leverage ratio of 3.18x on 30 September 2018, down 1.0x EBITDA since the refinancing last year.
The transaction aims at optimising Belron’s capital structure whilst maintaining full flexibility for its strategic options and an adequate approach to leverage with a net leverage ratio of 4.22x pro forma the operation, remaining below the net leverage ratio (4.25x) prevailing during last year’s refinancing. The transaction would extend Belron’s debt maturity profile as the new Term Loan is expected to have a November 2025 maturity.
The extraordinary dividend that D’Ieteren would receive from Belron following this transaction would allow it to pursue its long-term strategy which aims to invest in other activities with attractive value creation potential.
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 21% and 1.2 million vehicles on the road at the end of 2017. Sales and adjusted operating result reached respectively EUR 3.3 billion and EUR 85.9 million in FY 2017.
- Belron (54.11% 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 3.5 billion and EUR 189.8 million in FY 2017.
- 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 more than 115 countries. Sales and operating result reached respectively EUR 155 million and EUR 25 million in FY 2017.
Axel Miller, Chief Executive Officer
Arnaud Laviolette, Chief Financial Officer
Pascale Weber, Financial Communication - Tel: + 32 (0)2 536.54.39