Inter Parfums subsidiary closes €100 million five-year term loan

By Marisa Wong

Madison, Wis., June 1 – Inter Parfums, Inc.’s wholly owned subsidiary, Interparfums SA, closed a €100 million five-year term loan with a group of banks on May 29, according to an 8-K filing with the Securities and Exchange Commission.

The loan is repayable in 20 quarterly installments beginning on Sept. 30.

Interest is equal to Euribor plus a variable margin of up to 140 basis points determined based on Interparfums’ leverage ratio. However, the company said it expects to enter into an interest rate swap agreement for a fixed rate.

The credit agreement requires that the leverage ratio not exceed 2 to 1 and the interest cover ratio not exceed 5 to 1.

The loan was used to finance a $108 million acquisition of assets relating to the Rochas brand from Procter & Gamble Co.

In addition to the €100 million loan, Interparfums has also agreed to an uncommitted credit facility with the same financial institutions. The terms of that loan will be set prior to funding.

The fragrance company is based in New York.

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