Pérez-Llorca and Kirkland & Ellis advised DIA Group on the deal.
DIA Group has reached an agreement with its reference shareholder L1R (Letterone Retail), DEA Finance and its syndicated financial lenders to provide a path for a comprehensive recapitalisation and refinancing transaction.
The transaction would involve a €500 million equity increase to discharge an equivalent amount of financial debt, in particular: the debt under the €200 million super senior term loan facility owed by DIA Finance to DEA Finance (a Luxembourg limited liability company owned by L1R) and the debt under the €300 million 1 per cent Euro Medium Term Notes maturing on 28 April 2021.
DEA Finance will also extend, from April 2023 to June 2026, the maturity of €300 million bonds, of which 89.7 per cent were acquired by the company through an offer in August 2020. The syndicated creditors will, in turn, extend the maturity of the €902 million syndicated loan from March 2023 to December 2025.
In addition, DIA group will repay in advance €35 million of the senior loans granted by the syndicated lenders and the remaining €36 million will be paid in July 2022. As stated in the agreement, the transaction will be closed in April 2021 following approval by shareholders and bondholders.
DIA Group’s in-house team was led by Sagrario Fernández, general counsel, and Patricio Morenés as deputy general counsel.
Pérez-Llorca advised DIA Group with a team led by Madrid office partner Pablo González Mosqueira (Picture) and associate Carlos Mercadal.
Kirkland & Ellis advised DIA Group with a team led by London office Restructuring partner James Watson and associate Patrick Mackenzie.
Clients: DIA Group;