La Sirena successfully closes refinancing plan
- La Sirena has converted its existing shareholder loan into common shares, reducing its total leverage by 40%
- The banking syndicate has provided the company with an additional EUR6.5 million credit facility and reduced its debt repayments over three years, demonstrating its confidence in La Sirena.
- The company is now able to continue its ongoing expansion strategy and further strengthen its market leading position.
La Sirena, a leading frozen food retailer in Spain, has successfully refinanced its debt and strengthened its financial position. This will enable the company to continue its on-going expansion through opening new stores.
The banking syndicate, comprising Banesto, BBVA, BES, Natixis and Rabobank, has reached an agreement with La Sirena to provide an additional EUR6.5 million revolving credit facility and to reduce the company’s debt repayment commitments over the next three years. This demonstrates the banking syndicate’s support and commitment to the company’s business model, commercial activity and expansion plans.
This strengthening of La Sirena’s cash position, together with 3i’s decision to capitalise its shareholder loan in April 2012, has enabled the company to reduce its debt by 40%. This improves the company’s capital structure and enables La Sirena to report positive net earnings for the financial year ending April 2012. The new refinancing package will allow the company to continue its expansion strategy.
Since 3i’s investment in January 2006, La Sirena has focused on expanding the business from 165 stores to 242 and strengthening its market leading position.
Francesc Casabella, General Manager of La Sirena, said: “Securing a financing package from the banking syndicate in light of the current macroeconomic situation demonstrates the banks’ commitment to our business. We are pleased that we can continue pursuing our strategy. We are focused on creating an efficient business that offers competitive prices on a wide range of products while staying true to the high quality standards La Sirena stands for.”
Advisors on the refinancing were 360 Corporate, Akerton, Cuatrecasas, Linklaters and Rothschild/Rabobank..
About La Sirena: a leading frozen food company
Over 29 years ago La Sirena decided to focus on frozen food. Since then, the company’s philosophy is to provide high quality and innovative products. It offers a wide range of products which are easily available to consumers. Today, La Sirena offers practical and healthy solutions which meet everyone’s needs. This focus on quality and service has enabled the company to become the leading player in the frozen foods market in Spain. The company’s network comprises 242 stores, with over 1000 employees. La Sirena is owned by 3i Group, an international investor across Europe, Asia and the Americas.
La Sirena, a leading frozen food retailer provides customers with over 750 products ranging from basic ingredients to pre-cooked meals. Each year, between 120 and 140 new products are launched, which allows the company to keep up with continuing demand from a growing market.
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. As at 31 March 2012, 3i had total assets under management of £10.5bn, including £6.3bn advised or managed on behalf of third parties.
3i has been operating in Spain since 1990. It has invested over 1.9 billion euros in more than 130 companies. The main portfolio companies are: Mémora Inversiones Funerarias, GES, Everis, Prisa Radio, La Sirena, Boomerang TV, Esmalglass-Itaca, Cafe & Te, Daorje and Condepols-Derprosa. Previously, 3i was shareholder of Pepe Jeans, AC Hotels, Imaginarium, Clínica Baviera, Panreac, Sampletest and Grupo Ballesol.