Ontex Group extends revolver to 2025, repays term loan facility

Chicago, June 1 – Ontex Group NV worked out an agreement with its bank syndicate to extend its revolving credit facility to December 2025 from June 2024, according to a press release.

The revolver will be sized at €270 million through the initial June 2024 maturity date and then will decrease to €243 million through the extended maturity date.

Pre-extension, the interest rate is slightly higher at Euribor plus 260 basis points, based on 4x leverage.

The facility continues to limit dividend payout over its term and remains subject to covenant tests, requiring the leverage ratio not to exceed 4.25x by the end of 2023 and to decrease further thereafter.

Ontex also repaid its €220 million term loan with proceeds from its recently divested Mexican business.

The press release noted that with the term loan repayment and the revolver extension, the company’s main debt now consists of €580 million of 3˝% bonds due in July 2026.

Ontex is an Aalst, Belgium-based manufacturer and distributor of hygienic disposable products.

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