EG Group reprices European and North American loans
Published on: Dec 16, 2024
This has enabled the company to fully repay €610 million in second-lien facilities and drive its deleveraging strategy.
EG Group has announced the repricing of its Euro and US Dollar Term Loans and the full repayment of its second-lien facilities, marking a key step in improving its financial position.
By the end of November, the company had successfully repriced and increased the principal amount of its EUR Term Loan B (EUR TLB) to €1.634 billion, reducing the margin by 100 basis points. The adjusted principal reflects a €153 million repayment from recent asset disposals and a €510 million increase in loan size.
In December, EG America also repriced and upsized its US Dollar Term Loan B to $1.7 billion, reducing the margin by 125 basis points. This increase was coupled with a $203 million repayment from asset disposals and a $210 million loan expansion.
“The successful repricing will materially reduce our financing costs, enabling us to invest further in the growth of the business,” said Mohsin Issa, CEO and co-founder of EG Group.
These actions have enabled EG Group to fully repay €610 million in second-lien facilities, and eliminate remaining balances on its 2026 US Dollar and 2028 GBP Term Loans.
This repricing, along with the group’s recent non-core asset sales that generated over $400 million in proceeds, has driven the group’s progress on its deleveraging strategy. These measures, combined with improved free cash flow and financial performance, led Moody’s to upgrade EG Group’s outlook from negative to stable.
The repricing transactions will significantly reduce EG Group’s annual financing costs, creating additional free cash flow that can be reinvested into growth opportunities.
