3i-backed Action secures €275 million add-on financing
3i-backed Action (“the Company”), a leading non-food discount retailer based in the Netherlands, has successfully completed and syndicated a €275 million senior term loan C add-on financing, upsizing its total senior debt facilities to €621 million. The funds will be used to refinance a more expensive vendor loan note in full, partially repay shareholder loans and finance a dividend to shareholders.
3i, and funds managed by 3i, own 75% of Action and, as a shareholder, 3i Group plc will receive a total cash distribution of c. £58 million from this transaction, with funding expected to occur on 9 September. This will be recognised as realisation proceeds and contribute to the amount included in our distribution calculation for FY 2014, which now totals £723m.
3i Group and funds managed by 3i invested in Action in June 2011, acquiring a majority stake in the business. Since then, the Company has significantly grown and outperformed expectations, increasing its EBITDA from €71 million in FYE 2010 to €99 million in FYE 2012. As a result of this strong performance and the Company’s high cash flow conversion, the business has rapidly de-levered. This has provided ample scope to undertake an add-on financing on a prudent basis.
Established in 1993, Action has shown continuous growth and has become the leading non-food discount retailer with a sizeable position in the Netherlands and Belgium and a growing presence in Germany and France. The company offers a selection of branded and non-branded product categories, including DIY, personal care, household, textiles and seasonal products. Action currently has 369 stores and employs more than 11,000 people.
Action has grown from 245 stores in 2010 to 321 in 2012. The store roll out has been accelerated from 24 openings in 2011 to 52 in 2012. A further acceleration is planned for 2013, with 48 new stores having already opened this year.
Menno Antal, Managing Partner and co-head 3i Private Equity, commented: “New financing commitments were significantly oversubscribed, indicating the quality of Action’s credit. Action continues to grow and internationalise at an impressive rate and this only reaffirms our investment case. We’re committed to using our knowledge, experience and network to support Action achieve its business strategy.”
Action mandated BNP Paribas, Natixis, Rabobank and UBS to arrange the €275 million term loan C add-on financing. The transaction received strong support from a high quality syndicate of banks and funds, with both existing and new lenders committing to the add-on facility.
For further information, contact:
3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Notes to editors:
About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.