Douglas revises tranche sizes, sets final pricing in €2.38 billion three-part refinancing

By Paul A. Harris

Portland, Ore., March 26 – Douglas GmbH revised tranche sizes on its €2.38 billion three-part refinancing and set final pricing, according to a market source.

A downsized €1.305 billion amount of five-year senior secured notes launched with a 6% coupon at par, versus initial guidance in the 5½% area at par. The tranche size decreased from €1.33 billion after having previously upsized from €1 billion.

An upsized €475 million amount of Kirk Beauty SUN GmbH five-year senior PIK toggle notes launched with a 9% coupon at par, on top of initial guidance. The tranche size increased from €300 million.

Pricing on a downsized €600 million first-lien term loan is finalized at Euribor plus 550 basis points (versus 500 bps guidance), with a 0% Euribor floor at 99. The loan size decreased from €750 million after having earlier downsized from €1.08 billion. The floor and discount are unchanged.

Deutsche Bank, Goldman Sachs International, JPMorgan and UniCredit are joint bookrunners.

BayernLB, CM-CIC, Commerzbank and Landesbank Baden-Wurttemberg are the co-managers.

Proceeds from the loan and the Rule 144A and Regulation S notes will be used in conjunction with an equity contribution from existing shareholders to fully redeem the existing senior secured notes due 2022 and senior notes due 2023, pay off existing senior secured facilities and fund cash on hand.

The borrower is a perfume and cosmetics retailer based in Dusseldorf, Germany.

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