Europcar Groupe S.A.(“Europcar” or the “Issuer”), a société anonyme organized under the laws of France, announced the successful placement (the “Placement”) of €400m 9.375% senior subordinated unsecured notes (the “Notes”).
The Placement priced on Thursday, November 18, 2010 and was significantly oversubscribed. The Notes will be callable from November 15, 2013 and will mature on April 15, 2018. The coupon has been set at 9.375%, payable on a semi-annual basis. The Notes are rated B- by Standard & Poor’s and Caa1 by Moody’s.
The settlement of the Notes will occur on November 26, 2010, and the Notes will be listed on the Euro MTF market of the Luxembourg Stock exchange thereafter.
As highlighted in the press release dated November 15, 2010, Europcar will use the Notes proceeds to redeem the outstanding €375 million 8.125% senior subordinated unsecured notes due 2014 (the “Fixed Rate Notes”). On November 18, 2010, Europcar issued a conditional notice of redemption to redeem in full the Fixed Rate Notes on December 20, 2010 at a price of 104.063% of the principal amount of the Fixed Rate Notes.
Philippe Guillemot, Europcar Groupe Chief Executive Officer and Charles Desmartis, Chief Financial Officer, stated: “After the successful refinancing of our main fleet financing facility completed in August, we have now extended the maturity of approximately half of our corporate debt. The completion of these two refinancing projects and the strong development of fleet operating leases in the last two years provide us with a strong and highly diversified financing structure to support our business activities in the coming years.”
Gilbert Saada, Chairman of the Board of Europcar Groupe and a Member of Eurazeo’s Executive Board, said: “We are very pleased that Europcar successfully completed the refinancing of the Fixed Rate Notes, extending half of its corporate maturities until 2018. This transaction has received strong support notably thanks to the performance of the company through the downturn and in the first nine months of 2010. We believe the new maturity profile gives the company a clear horizon to develop its leadership position and build on the recently unveiled initiatives such as car2go.”