Pronovias may reduce debt with recapitalization plan

Chicago, Jan. 24 – Pronovias (CatLuxe Sarl) was in focus on Tuesday after a second downgrade in January, this time from S&P Global Ratings.

The company has a €45 million revolving credit facility and a €215 million senior secured term loan, according to the agency.

The bridal wear company lined up a binding agreement for a recapitalization transaction in late December between principal shareholder BC Partners and a substantial majority of its senior and junior lenders, according to a press release.

The group will use some of the infusion of cash to materially reduce its debt.

The remaining debt maturities are expected to be extended to lengthen the debt runway and give the company time to implement its business plan.

The extended debt is also expected to have better financial terms.

As part of the transaction, the majority ownership of the group will transfer to a consortium of investors led by Bain Capital and MV Credit.

For the recapitalization plan to be finalized, all of the company’s first-lien lenders need to agree to the transaction.

S&P said that more than three-quarters had agreed when the plan was publicly announced in late December.

The bridalwear brand is based in Barcelona. BC Partners acquired a 90% stake in the company in 2017.

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