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Success of the Group financing transactions for a total amount of €1.8bn
Paris, 7 November 2019.
In the context of its refinancing plan announced on 22nd October, the Casino Group announces the successful syndication of a €1,000m term loan B and placement of a €800m secured high yield bond, both maturing in January 2024.
The new Group financings thus amount to €1.8bn, €300m higher than the €1.5bn target amount announced previously. This reflects the large oversubscription of these instruments by investors.
This additional amount will increase the size of the tender offer on the existing bonds maturing in 2020, 2021 and 2022, which was launched on 5 November and is expected to close on 12 November.
The term loan margin will be Euribor + 5.5%1 and the bond coupon will be 5.875%.
In the context of these financing transactions, the Group plans, as already announced to provide security over the following assets:
- The term loan investors will benefit from security over the main French operating subsidiaries, Casino Finance and the French holding companies owning the Group’s stakes in Latin America;
- The investors of the high yield bond, issued by Quatrim, a 100%-controlled indirect subsidiary of Casino, Guichard-Perrachon will benefit from security over the shares of Immobilière Groupe Casino, which itself owns approximately €1.0bn of real estate assets in France.
This transaction results in an extension of the average debt2 maturity from 3.3 years to 3.9 years. Combined with the new revolving credit facility that is being put in place for an amount of approximately €2,0bn and a maturity in October 20233, this refinancing plan also improves the Group’s liquidity with an average maturity of credit lines in France increasing from 1.6 years to 3.6 years.
This strengthening of the capital structure will allow the Group to fully focus on reaching its operating, financial and strategic objectives as well as executing its asset disposal plan.
The completion of these transactions is expected by the end of November.
This press release constitutes a public disclosure of inside information by the Group under Regulation (EU) 596/2014 (16 April 2014) and Implementing Regulation (EU) No 2016/1055 (10 June 2016).
The Offering is being made by means of an offering memorandum. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security in any jurisdiction and shall, in any circumstance, not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any U.S. state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state and local securities laws. Accordingly, the Notes are being offered and sold in the United States only to (i) qualified institutional buyers in accordance with Rule 144A under the Securities Act and (ii) to non-U.S. persons outside the United States in offshore transactions in accordance with Regulation S under the Securities Act. Any public offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the Issuer and that will contain detailed information about the Issuer, the Group and its management, as well as financial statements.
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ANALYST AND INVESTOR CONTACTS
Régine GAGGIOLI – +33 (0)1 53 65 64 17
+33 (0)1 53 65 24 17
Casino Group – Direction of Communication
Stéphanie ABADIE - firstname.lastname@example.org - +33 (0)6 26 27 37 05
+33(0)1 53 65 24 78 - email@example.com
Agence IMAGE 7
Karine ALLOUIS - +33(0)1 53 70 74 84 - firstname.lastname@example.org
Grégoire LUCAS - email@example.com
1 If Euribor is negative, it will be deemed equal to zero
2 Bond debt and term loan
3 Cf. press release issued this morning.