13 December 2022

Group Kiloutou announces new debt financings secured in November for a total amount of €84m to finance the general corporate and working capital purposes of the Group :

  • A €49m 8-year Subordinated Bonds (Obligations Relance) at a blended interest rate of 6.4%

On November 23, 2022, the Company entered into subscription agreements to issue €49.0 million of state-guaranteed stimulus bonds (Obligations Relance) (the “Stimulus Bonds”) in two tranches by way of a private placement to the subscribers of such bonds, Fonds Obligations Relance France and Fonds Obligations Relance France – Eiffel Investment Group. The Group expects to issue the Stimulus Bonds by the end of November 2022. The Stimulus Bonds will mature eight years after the issue date thereof.

Of the total aggregate principal amount of the Stimulus Bonds, 90% (€44.1 million) will bear an interest rate of 6.15% per annum with the remainder (€4.9 million) bearing an interest rate of 8.15% per annum.

The Subscriber benefits from a partial guarantee from the French State. The Group has not provided any guarantees or security in relation to the Stimulus Bonds.

The Stimulus Bonds rank senior to “Investor Liabilities” (i.e. liabilities owed to certain shareholders of the Company) in accordance with an intercreditor agreement entered into with certain shareholders of the Company and junior to the other preferred or unsecured creditors of the Company in accordance with the mandatory provisions of the 2021-318 Decree.

  • A €25m 4-year Senior Facility Agreement

On November 23, 2022, the Company entered into a senior facility agreement (the “Senior Facility Agreement”) with certain lenders, Crédit Lyonnais as Coordinator, Sustainability Coordinator and Sustainability Agent, GLAS SAS, as Facility Agent, and the Security Agent, for an aggregate amount of €25.0 million (the “Senior Term Loan Facility”) to finance the general corporate and working capital purposes of the Group (but excluding the direct or indirect financing of any acquisition).

The Company will repay the Senior Term Loan Facility in equal instalments at the end of each three-month period after the date on which the facility is drawn until, and including, the final maturity date, which is October 30, 2026.

The Senior Term Loan Facility is, or will be, guaranteed on a joint and several basis by the Guarantors. Such guarantees rank or will rank pari passu in right of payment with the guarantees of the Existing Notes and the Revolving Credit Facility pursuant to the terms of the Intercreditor Agreement.

  • A €10m 4-year Bilateral Loan

On November 15, 2022, Kiloutou entered into a French law-governed bilateral loan with Banque CIC Nord Ouest and Banque Européenne du Crédit Mutuel providing for an unsecured and unguaranteed €10 million facility amortizing over a period of 48 months.

Olivier Colleau, CEO of Kiloutou Group, comments “I am very proud to announce that, in November, we closed the acquisition of Grupo Vendap, the leading equipment rental company in Portugal and we succeeded in securing additional financing for a total amount of €84 million amongst our relationship banks and in the form of 8-year unsecured Stimulus Bonds “Obligations Relance”

Sycomore Corporate Finance acted as exclusive advisor to Group Kiloutou on the €84m new debt financing. The advising team comprised Mofdi Gassoumi and Augustin Delayer.