Fluidra starts the new year strong, repricing its debtJanuary 28, 2020
Solid cash generation allows Fluidra to carry out an early loan repayment of 150 million euros
The company managed to improve its financing costs between 25 and 75 bps depending on the debt type
Fluidra, the world leader in the pool and wellness equipment business, has successfully completed the repricing process it began at the beginning of the year.
New rates are Euribor plus 200 bps for the term loan denominated in euros, and Libor plus 200 bps for the one in USD, decreasing by 75 and 25 bps respectively. Additionally, for the revolving credit facility, the applicable margin for the benchmark interest rates will be between 150 to 200 bps, thus reduced by 50 bps with respect to the previously applied rates between 200 and 250 bps.
In addition, the company will carry out an early repayment of 150 million euros of term loans that had a total value of 894 million euros as of 30th September 2019. The early repayment was made possible by the strong generation of cash throughout the year.
Fluidra strengthens itself for a solid future
Both movements will generate significant interest savings of around 7 million euros. This improvement in debt quality means that Fluidra is better positioned to execute its strategy in the coming years.
“The trust that creditors have placed in us during this process puts us in a great position to continue fulfilling our strategic objectives. We face the future with optimism,” stated Xavier Tintoré, CFO of Fluidra.
This refinancing, together with the stability of the sector and its leading platform, allow Fluidra to reiterate the objectives of its 2022 Strategic Plan, which contemplates a leverage ratio of c.2x EBITDA.