(Boursier.com) — CS-GROUP fell by 0.3% to 6.55 euros on Monday, while the group announced that it had refinanced part of its debt and strengthened its financial resources by issuing a bond loan for an amount maximum total nominal value of €30 million, repayable at maturity at July 2029, subscribed by debt funds managed by the portfolio management company Zencap Asset Management.
The drawing of a first tranche of 20 ME of this loan contributes to the early redemption of the EuroPP 2023 bond loan of 15 ME issued in 2016, maturing in April 2023, and of the EuroPP 2025 bond loan of 10 ME issued in 2018 as part of the financing of the acquisition of Novidy’s, maturing in June 2025. The second tranche of 10 ME will be “drawn” within 12 months and ultimately repayable in July 2029 as well.
CS GROUP specifies that this source of additional financing and the extension of the maturity of the debt reinforce the implementation of its strategic plan Vision 2024, which aims in particular to accelerate the growth of the group on its strategic axes. This refinancing is accompanied by a reduction in the annual interest rate which results from the improvement in the performance of the company.
“The group does not specify the cost of this refinancing or the exact rate of this loan, but specifies that it is lower than that of the bonds repaid, which testifies to the improvement in its credit profile in recent years” comments Portzamparc who points out that the long maturity of the new bonds “is obviously a good thing as new acquisitions are expected over the next few years”. Enough to aim for a course of 7.30 euros while remaining to “keep”.
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