INTERNATIONAL. Dufry Group has concluded the refinancing of its main bank credit facilities, valued at about CHF3.4 billion (around the same value in US Dollars). This includes term loans of CHF1.3 billion, an increased revolving credit facility (RCF) of CHF1.5 billion and a short-term facility of CHF600 million.
Importantly, said Dufry, the structure provides for an extended maturity profile, with the term loans and RCF expiring in 2022 compared to the previous facility’s expiry date of 2019. The new bank financing structure also comes with better conditions when compared to the former, it noted, and the main covenant (net debt/adjusted EBITDA) is 4.00x throughout the lifetime of the facility, compared to 3.75x previously. It also carries a lower interest rate.
The company said in a statement that the refinancing would “reduce the overall interest expense of bank debt [and] generate combined yearly interest savings of around CHF50 million and provides solid foundations for the business in the next years”.
The refinancing of the bank debt concludes the restructuring of Dufry’s financing, which started in December 2016, with the repayment of a US$500 million Senior Note, followed by the issuance of €800 million in Senior Notes in October 2017, and the repayment of €500 million in Senior Notes this month. 2017. The interest cost reduction of around CHF50 million will be split between 2017 and 2018.
Dufry Chief Financial Officer Andreas Schneiter said: “The refinancing of our bank facilities is an important achievement in many aspects. Apart from extending our maturity profile by more than three years, it provides additional flexibility thanks to the bigger RCF as well as the higher covenant threshold, and reduces our interest costs significantly. Last but not least, the transactions done in the last 12 months also confirm the confidence of the banks and bondholders in Dufry.”
