Douglas tweaks tranches, sets talk in €2.38 billion refinancing

By Paul A. Harris

Portland, Ore., March 24 – Douglas GmbH rejiggered tranche sizes on its €2.38 billion three-part refinancing and conferred initial guidance, according to a market source.

An upsized €1.33 billion amount of five-year senior secured notes is guided with a 5½% coupon at par. The tranche is upsized from €1 billion.

A €300 million tranche (unchanged) of Kirk Beauty SUN GmbH five-year senior PIK toggle notes is guided with a 9% cash coupon at par.

Meanwhile a downsized €750 million first-lien term loan maintains guidance at a 500 basis points spread to Euribor, a 0% Libor floor, at 99. The loan size decreased from €1.08 billion.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.