3i-backed Action secures €1.675 billion refinancing
Action has successfully syndicated and allocated a €1.675 billion all-senior debt refinancing.
3i-backed Action (“the Company”), a leading international non-food discount retailer headquartered in the Netherlands, has successfully syndicated and allocated a €1.675 billion all-senior debt refinancing, comprising a €1.6 billion term loan B and a €75 million Revolving Credit Facility. Proceeds from the term loan will be used to refinance existing debt and finance a distribution to shareholders.
As a result, 3i Group will receive c. £187 million proceeds, which are expected to be received before the end of December 2016.
Action has demonstrated significant growth since 3i, and funds managed by 3i, invested in the Company in 2011. Over the past five years, Action has grown the number of stores from 245 to around 840 today in the Netherlands, Belgium, France, Germany, Luxembourg and Austria. This growth, and the strong cash generation, has allowed the business to rapidly de-lever and take on further financing on a prudent basis.
Robert Van Goethem, Partner and Head of Consumer, 3i Private Equity, commented: “Action continues to perform strongly by expanding rapidly. The company has become a seasoned issuer in the debt markets. The strong demand from investors reflects the high level of support for Action’s strategy and management.”
Action mandated ABN AMRO, BNP Paribas, Deutsche Bank, ING, Natixis and Rabobank to arrange the debt refinancing. The transaction received strong support from a high quality syndicate of banks and funds, with both existing and new lenders committing to the facilities.
For further information, contact:
3i Group plc
Tel: +44 20 7975 3021
Tel: +44 20 7975 3027
Notes to editors:
About 3i Group
3i is an investment company with three complementary businesses, Private Equity, Infrastructure and Debt Management, specialising in core investment markets in Northern Europe and North America. For further information, please visit: www.3i.com
Action is a fast-growing international non-food discounter with more than 800 stores in the Netherlands, Belgium, France, Germany, Luxembourg and Austria and over 32,000 employees. In 2015 Action realised sales of €2 billion. In 2016 Action expects to open 195 stores. Just over a third of the c. 5,500 SKUs that Action offers in its stores are part of the standard range. The rest of the range is variable and changes rapidly. Action’s product range includes household products, office supplies, cosmetics, food & drink, toys, textiles, glassware, porcelain and crockery, seasonal items, decorative articles and DIY products. Action introduces c. 150 new articles every week.
Action is able to charge extremely low prices due to its large scale and efficient purchasing, optimal distribution and its cost-conscious company culture. Consumers appreciate these surprisingly low prices and the constantly varying range of products. Many customers visit the Action stores more than once a week. They see a visit as fun shopping, because they are constantly surprised with new items. The fact that customers recognise and appreciate this was proven by a survey conducted in 2016 among more than one million consumers in nine countries, in which Action was voted Retailer of the Year Europe for the third time in a row.