Belysse unit signs €120 million facility to repay existing notes

By William Gullotti

Buffalo, N.Y., Dec. 8 – Belysse Group NV, formerly Balta Group, entered a committed term facility totaling €120 million via subsidiary LSF9 Belysse Investments Sarl to repay outstanding senior secured notes maturing in 2024, according to a Friday press release.

The four-year facility includes an option to extend the maturity by one year.

Borrowings are available in dollars as well as euros.

Interest will be fixed and include a 5% PIK interest option, with the cash rate dependent upon the currency. The interest rate for euro-denominated borrowings is 6% per year, and the rate for dollar-denominated borrowings is 7%.

The company’s option to pay PIK interest instead of the cash rate is subject to shareholder approval, with shares issued at 20% of the equity value of the business above a total equity value threshold of about €41.1 million, which is roughly €1.14 per share.

Financing is expected to close during the first quarter of the 2024 fiscal year.

The outstanding 2024-maturing notes will be repurchased at 86.5, per previously obtained consent from noteholders representing approximately 75% of the outstanding issue.

Upon closing of the transactions, Belysse’s outstanding senior debt is expected to consist of the new facility, a revolving credit facility and a sale-and-lease-back facility. Although the company reported working to amend the revolver to retain a portion of its commitments under its new capital structure, it may alternatively seek to obtain a new one.

Based in Belgium, Belysse manufactures sustainable textile floor coverings for commercial and residential applications.

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