FNAC Darty expects to reduce delayed-draw term loan to €100 million

By Marisa Wong

Los Angeles, Sept. 12 – FNAC Darty announced an agreement with its banks relating to its delayed-draw term loan agreement signed in December 2022.

The company intends to reduce the amount available under the delayed-draw term loan to €100 million from €300 million, subject to the closing of an issuance of new notes, according to a press release.

The company announced on Tuesday an offering of €300 million senior notes due January 2029, proceeds of which will be used to refinance the company’s outstanding €300 million senior notes due 2024.

In addition, the term loan will be amended to change its purpose to be used for general corporate purposes.

The maturity date of the term loan will remain Dec. 16, 2025 and may be extended by one or two years upon lenders’ approval.

The company said it does not intend to draw on the new €100 million term loan on the issue date of the new notes.

The company noted that if the closing of the new notes issuance does not take place, the term loan will not be modified. The size of the term loan would remain €300 million, available for drawing until the final maturity date of the 2024 notes.

In addition, the company’s €500 million revolving credit line maturing in 2028 may include two new extension options, allowing this credit line to be extended to 2030 upon lenders’ approval.

The company said it is in advanced discussions with its lenders, who are showing strong support. The implementation of these new extension options is expected in the next few months.

FNAC Darty is an Ivry-sur-Seine, France, retail company.

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