Clariane reports €695 million in financing/refinancing, extensions

By William Gullotti

Buffalo, N.Y., July 25 – France’s Clariane conducted a combination of financing, refinancing and maturity extension transactions that totaled €695 million, according to a Tuesday press release.

The transactions included extending the maturity of its €505 million term loan facility to 2026, signing a new €40 million sustainability-linked private placement and refinancing €150 million of its real estate debt.

Philippe Garin, chief financial officer of Clariane, added, “These new financing facilities demonstrate the confidence that main banks and financial institutions have in Clariane’s financial profile and strategy, and in its commitment as a purpose-driven company to tackling environmental, social and governance (ESG) issues.”

Term loan extension

The €505 million term loan facility will now mature in May 2026, in line with the maturity of the company’s existing revolving credit facility with a €492.5 million balance.

The term loan refinancing transaction resulted in a slightly larger facility than the original one signed in 2019. The new term loan grid has an average margin of 285 basis points, 145 bps above the previous facility.

According to the press release, all existing banks remained part of the extended term loan, and two new banks joined the syndicate in the process. Some Schuldschein lenders have also transferred their positions into the extended term loan.

This amended facility includes an accordion feature, which allows Clariane to increase its size up to €800 million in total, enabling further Schuldschein holders or new banks to join the extended term loan.

Included in the amended facility were provisions to gradually decrease the leverage covenant to 3.75x from 4.5x between June 2024 and December 2025 and the addition of a 65% loan to value covenant.

Private placement

Clariane privately placed an issue of €40 million sustainability-linked bonds with Eiffel Investment Group.

The bond terms employ a highly incentivizing structure that will increase or decrease the interest rate, depending on the achievement of its extra financial objectives.

Further details regarding the placement, such as the base interest rate and tenor, were not included in the press release.

Refinancing transactions

According to the press release, the company has refinanced €150 million of its real estate debt since the beginning of 2023.

On average, the new loans saw an increase in the credit spread ranging between 30 bps and 50 bps over 2022.

Further details regarding the refinancing loans, such as tenor, lenders and interest basis, were not disclosed.

In addition, on June 23, Clariane also raised €120 million in equity from a group of investors comprising Amundi Immobilier, Covea, Credit Agricole Assurances and Malakoff Humanis, through their investment into a real estate vehicle holding a pan-European portfolio of 46 assets, valued at approximately €500 million.

Based and founded in France, Clariane is a developer and provider of care homes, healthcare facilities and home and alternative living solutions with operations in seven European countries.

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