SMCP redeems early €180 million of 5 7/8% secured notes due 2023

By Rebecca Melvin

New York, May 10 – SMCP Group SAS announced that it has completed early redemption of €180 million of its 5 7/8% senior secured notes due 2023, of which €371 million were issued in May 2016, according to a company news release.

The planned early redemption date is May 21, at which time the remaining outstanding amount will be €180,306,000.

The early redemption is part a SMCP’s capital structure optimization plan that also includes repayment of a €110 million drawdown and cancelation of its €250 million revolving senior credit facility, which went into place October 2017.

The company also announced that it has signed a new €465 million unsecured credit facility, comprising a €265 million amortizing term loan and a €200 million revolver, with both maturing in May 2024. The refinancing will result in a reduction of the average cost of debt by about 200 basis points to 2.6%.

SMCP said the refinancing is part of its strategy of strengthening its capital structure to increase financial flexibility to take advantage of future growth opportunities.

The credit agreement was signed on May 9 by SMCP Group SAS as borrower and SMCP SA as guarantor. This financing is provided by a diversified bank syndicate, comprising historical partners and new banking relations, including primarily international banks, coordinated by BNP Paribas and Credit Agricole CIB.

SMCP, formerly BiSoho SAS, is a Paris-based apparel retailer.

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