Parisian buyout firm Eurazeo refinances Europcar


French buyout firm Eurazeo has completed the refinancing of Europcar, the European car hire business it bought from Volkswagen six years ago in a deal that valued the company at €3.08bn.

The latest and final step in the refinancing scheme was the release of the amended senior revolving credit facility of €300m.

The facility became effective on 29 June following the completion of customary conditions precedent, including the refinancing of both the UK facilities previously maturing in December 2012 and the 2013 high-yield notes.

The long-term fleet financing in the UK has been completed by a financing structure maturing in December 2015 combining bank credit facilities and operating lease lines.

The 2013 high-yield notes have already been replaced by the 2017 bond that was issued on 4 May.

The refinancing programme, which was initiated in February, provides the company with an improved capital and debt profile that will see new corporate debt mature in 2017 and 2018.

The programme has also reduced financial expenses by €34m on a proforma basis and reduced corporate net debt to € 508m with a leverage in the range of 3.8 to 3.9 times on a proforma basis from 5.2 times.

Eurazeo bought an 85.2 per cent stake in Europcar in May 2006 backed with €663m of equity. The firm paid Volkswagen 16.5 times the company’s 2006 EBIT.

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