For the Barrière Group, which owns 34 casinos and 18 hotels, direct access to investors was not guaranteed. However, the group has raised a European private placement, or EuroPP, of 90 million euros. The EuroPP is a type of financing transaction negotiated between a company, either public or private, and one or more institutional investors.
The investment was part of a broader refinancing operation of its debt.
“We wanted to replace bank financing, but also diversify our sources of funding,” said Philippe Perrot, Group Finance Director.
Negotiations led to a new financing of 240 million, from a banking pool reduced from 7 to 4 institutions.
The group has negotiated a revolving, bilateral €40 million loan to fund its working capital. The parallel implementation of the EuroPP has extended deadlines. Indeed, a first tranche of 15 million euros will have to be repaid in 2024, a portion of 75 million in 2025, and the 100 million bank loan will have to be repaid in 2023.
Full article: Les Echoes (French)
