Lyon, 28 June 2017
OL SAS, a wholly-owned subsidiary of OL Groupe, has signed the documentation related to bank and bond borrowings intended to refinance nearly all of the Group's bank and bond debt. These borrowings will have principal amounts of €209 million and €51 million, respectively, and were co-arranged by the Crédit Agricole group (LCL as Global Coordinator, CACE and CACIB), the BPCE group (BP Aura, CERA and Natixis) and CIC Lyonnaise de Banque.
The refinancing of the Group's debt will be articulated around two instruments:
- a bank loan agreement signed with Arkéa Banque des Entreprises et des Institutionnels, Banque Cantonale de Genève, Banque Populaire AURA, BNP Paribas, Caisse d'Epargne Rhône Alpes, Crédit Agricole Centre Est, HSBC France, La Banque Postale, LCL, CIC Lyonnaise de Banque, Natixis and Société Générale, totalling €209 million; this loan will include:
- a tranche A of €106 million, of which 50% will amortise and 50% will be repaid at maturity in seven years;
- a tranche B of €30 million, to be repaid at maturity in seven years;
- a five-year revolving credit of €73 million, renewable twice a year.
- a €51 million bond issue, to be repaid at maturity in seven years.
At the same time, the Group's legal structure is to be simplified. Foncière du Montout, the company that owns the new stadium, will be merged into OL SAS, the company that owns the professional football club. Both companies are wholly-owned subsidiaries of OL Groupe.
Based on all of this bank and bond financing, totalling €260 million, the Group expects to reduce its annual interest expense by around €7 million starting with the 2017/18 financial year (assuming benchmark rates remain unchanged), compared with current financing costs.
The bank loan and bond agreements remain subject to customary conditions precedent. In particular, shareholders must validate the merger of OL SAS and Foncière du Montout, which will be submitted to them at Shareholders' Meetings on 30 June 2017.
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