Showroomprive.com / Key word(s): Financing/Capital Increase
Showroomprive.com: SHORT AND MEDIUM-TERM FINANCIAL STRUCTURE STRENGTHENED
30-Apr-2020 / 08:00 CET/CEST
SHORT AND MEDIUM-TERM FINANCIAL STRUCTURE STRENGTHENED
RENEWAL AND EXTENSION
OF EXISTING EUR 65 MILLION BANK DEBT
ADDITIONAL EUR 35 MILLION CREDIT FACILITY
IN THE FORM OF A STATE-GUARANTEED LOAN
PLANNED EUR 8-10 MILLION CAPITAL INCREASE
WITH PREFERENTIAL SUBSCRIPTION RIGHTS MAINTAINED
UNDERWRITTEN BY FOUNDING DIRECTORS
La Plaine Saint Denis, 30 April 2020 - Showroomprivé, a leading European
online retailer specialising in fashion for the Digital Woman, has signed a
major agreement with its bank partners (BNP Paribas, CAIDF, Société Générale
and BpiFrance) to secure and shore up its financial structure over the short
and medium term. The funding provided under the agreement will enable the
Group to ambitiously pursue its strategy of improving profitability over the
coming years besides coping with the current health crisis. This agreement
takes the form of a conciliation protocol signed on 29 April 2020 and should
be submitted for approval in the coming days. It covers three arrangements:
1) Renewal and extension of existing bank debt
The discussions previously announced with bank partners have culminated in
an agreement to refinance and extend the maturity of the Group's existing
lines of credit, including overdraft facilities, representing a total
financing amount of EUR 62 million. This bank debt now consists of term
loans repayable in gradually increasing three-month and six-month
instalments from 2022 until 31 December 2026. The overall additional cost of
this debt compared to the previous terms is limited, around 30 to 60 basis
points depending on the financing line.
The Group will also continue to benefit from a EUR 2.8 million bullet loan
from BpiFrance repayable at maturity in 2023.
2) New EUR 35 million line of credit
CAIDF (Caisse Régionale de Crédit Agricole Mutuel de Paris et
d'?Zle-de-France) has granted the Group a EUR 35 million guaranteed loan of
which 90% is guaranteed by the state, repayable with final maturity at the
discretion of the company up to 2026.
This new line of credit is part of a set of measures adopted by the French
government as part of its EUR 110 billion national business assistance
programme, in accordance with ministerial orders of 23 March and 17 April
2020 awarding the state guarantee to credit institutions and financing
companies, pursuant to Article 6 of Act no. 2020-289 of 23 March 2020.
As part of the overall plan, bank creditors have agreed to waive the
application of commitments relating to compliance with financial ratios as
of December 31, 2019for the year 2020 and in June 2021.
From the 31 December 2021 onwards, facilities 1 and 2 are subject to
compliance with a declining leverage ratio R2 (net debt /EBITDA), which will
decrease from a maximum value of 6, applicable exceptionally to 2021, to 2.5
for 2025.
3) Share issue and undertaking by founding directors
In addition, the Group has committed to make its best efforts to achieve a
EUR 8-10 million capital increase, open to all shareholders at a price of
EUR 0.15 per share.
The capital increase would be supported by the Company's founding directors,
Thierry Petit and David Dayan, who currently hold 24.25% of the share
capital and have agreed to subscribe to the capital increase on an
irreducible basis up to their share and for an additional amount on a
scalable basis to reach 75% of the planned issue and thus ensuring its
success.
Thierry Petit and David Dayan would also acquire the preferential
subscription rights (PSR) of the other funders (who hold 8.68% of the
capital of Showroomprivé) Carrefour (which currently holds 20.42% of the
share capital) at a symbolic price of 1 euro to be paid for each block of
PSR thus acquired by each of the assignees. Carrefour has stated its
intention not to take part in this share issue; its e-commerce investments
are now focused on food sector.
The capital increase should be completed by 30 November 2020, subject to
approval by the Shareholders' General Meeting scheduled for 8 June 2020 and
the granting to the Board of Directors in order to implement it. The
transaction is also subject to obtaining an exemption from the French
financial markets authority (AMF) from the requirement to file a public
offer project that could result from the subscription of the founding
directors to the operation. This operation will be the subject of a
prospectus subject to the approval of the AMF.
Showroomprivé co-founders and co-CEOs Thierry Petit and David Dayan
commented on this landmark agreement: "We are satisfied with the
constructive talks we've held with our bank partners. We thank them for
their renewed trust during these troubled times and their support for our
strategy of turning the business around and improving fundamentals. Our
financing requirements is now secured in the short and medium-term under
satisfactory financial terms. We have decided to show our full support for
this refinancing transaction by committing to guarantee the success of the
forthcoming share issue. Every shareholder can take part in the transaction
if they want, as preferential subscriptions rights will be maintained.
Showroomprivé has the capacity to consolidate its positioning among the
leading sector players. This new phase will allow us to continue to
implement our strategy of optimising our purchasing model and processes
while streamlining cost structure, even during the present health crisis."
Next release
Q1 2020 turnover: 7th of May 2020
ABOUT showroomprive.com
Showroomprivé.com is a European player in event-driven online sales that is
innovative and specialized in fashion. Showroomprivé proposes a daily
selection of more than 2,000 partner brands over its mobile applications or
its Internet site in France and in six other countries. Since its creation
in 2006, the company has undergone quick growth.
Listed on the Euronext Paris market (code: SRP), Showroomprivé achieved a
gross business volume with all taxes included of more than 821 million euros
in 2019, and net revenue of 616 million euros. The Group employs more than
950 people.
For more information: https://www.showroomprivegroup.com [1]
WARNING
Certain information included in this press release does not constitute
historical data, but forward-looking statements. These forward-looking
statements are subject to risks and uncertainties, particularly related to
the current health context. These risks and uncertainties appear in addition
to those described and identified in Chapter 4 "Risk factors" of the
registration document filed with the Autorité des Marchés Financiers (AMF)
on April 19, 2019, available on the Company's website
(www.showroomprivegroup.com) and on AMF's website (www.amf-france.org). This
press release only includes summary information and does not purport to be
exhaustive
Contacts
Showroomprivé ACTUS finance &
communication
François de Castelnau, Directeur Grégoire Saint-Marc,
financier Relations Investisseurs
investor.relations@showroomprive.net showroomprive@actus.fr
+33 1 53 67 36 94
Priscilla Le Minter, Communication Alexandra Prisa,
Relations Presse
priscilla.leminter@showroomprive.net aprisa@actus.fr
+33 1 76 21 50 16 +33 1 53 67 36 90
Attachment
Document title: SHORT AND MEDIUM-TERM FINANCIAL STRUCTURE STRENGTHENED
Document: https://eqs-cockpit.com/c/fncls.ssp?u=KJPBDIFOLH [2]
Dissemination of a Financial Wire News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Language: English
Issuer: Showroomprive.com
1, rue des Blés - ZAC Montjoie
93210 La Plaine Saint-Denis
France
Internet: showroomprive.com
ISIN: FR0013006558
EQS News ID: 1033347
End of Announcement - EQS News Service
1033347 30-Apr-2020 CET/CEST
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(END) Dow Jones Newswires
April 30, 2020 02:00 ET (06:00 GMT)
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