Madrid, June 26th 2018.- ADVEO’s Board of Directors, in coordination with Banks that signed the syndicated loan, has signed an exclusivity agreement with one of the world’s premier fixed income investment managers, with more than $1.0 trillion assets under management, that would allow to invest €33m in the company, as well as to change the current financing conditions. This new financing agreement would involve providing ADVEO with enough funds to recover the target stock levels and to continue implementing its Strategic Plan 2017-2020.
After accepting this offer a process of documentation and authorizations begins, that will extend until July 27th, when an Extraordinary General Shareholders Meeting will be held to approve the terms.
The agreement involves reorganizing current existing debt and the creation of a new company where ADVEO Group International will own 100% of its capital, as well as the subordinated debt of €91.4m.
The new company will be the operating one and will include all subsidiaries and real estate assets (the real estate assets, available for sale, have an estimate value of €40m) as well as the news funds of €33m. This new company will hold the senior debt of €68.3 with two tranches, with maturity to 4.5 and 5 years.
The new €33m financing is considered a super senior loan, with maturity at 3 years bullet.
ADVEO had a total net debt of €318m in September 2015. Debt reduction has been one of the main goals for the new management team when they took charge of the company at the end of 2015. In order to achieve this objective the company implemented different actions, such as disinvesting in certain business channels in EOS and disinvesting in real estate assets up to €18m. From March 2017 to October 2017 the existing debt was restructured and credit availability was extended to €159.7m, although an additional credit to recover stock availability was still needed, what has now been solved with a the new €33m funding.
ADVEO’s net debt at the end of 2017 reached €192m, 40% less than in September 2015.