On 12 February, Euroports signed a €435m “amend-and-extend” of its existing group senior debt facilities, with the borrower being Euroports Netherlands BV. The senior debt facilities comprise of:
- a €380m term loan facility in two tranches, used to refinance existing debt;
- a €30m capex facility, to be used to finance capital expenditure; and
- a €25m revolving facility, to be used for working capital purposes.
The new facilities have a contractual maturity of 30 July 2020 and extend the maturity of Euroports’ existing senior debt facilities by two years. Additional fixed rate interest rate swaps were also entered into by the borrower to cover the additional two year tenor in line with the hedging requirements.
As a result of the attractive borrowing environment, Arcus worked with the other shareholders and management of Euroports to “amend-and-extend” the existing group senior debt facilities, with the support of the majority of the existing lenders, with non-consenting lenders being replaced by upsizing existing and new lenders. This resulted in a cost-effective and efficient process. Key objectives were achieved, including extending the maturity, c. 100bps margin reduction (across the maturity profile), and increasing covenant headroom to create additional operational flexibility for Euroports. Both Arcus and Euroports are very pleased with the outcome of the process.
Euroports was supported by BNP Paribas and Lloyds Bank on the refinancing and consent process.
This information note (“Note”) has been prepared by Arcus European Investment Manager LLP (“Arcus”) for use solely for information purposes. Arcus makes no representations or warranties to the accuracy or completeness of any past, simulated or estimated performance results contain herein, and further nothing contained herein shall be relied upon as a promise by, or representation by, Arcus whether as to past or future performance results.