Some of Spanish wedding retailer Pronovias’ term loan was up for sale in an auction last week, sources told Reorg. About €45 million to €48 million of the company’s facility traded in the mid-70s.
The group was affected by restrictions caused by the Covid-19 pandemic and was, like many other retailers, heaviest hit in April when it reported a negative EBITDA. Trading has been recovering since.
Management
told lenders in October that Pronovias can rely on €12 million liquidity consisting of €6 million of cash and €6 million of undrawn facilities. The group’s last-12-months’ pro forma adjusted EBITDA is €35 million. Year to date reported EBITDA amounted to €3 million.
Pronovias’ capital structure consists of:
- €215 million first lien term loan paying Euribor+450 bps due 2024;
- €60 million second lien paying E+750 bps due 2025; and
- €45 million RCF due 2023, which is ranked pari passu with the first lien term loan.
The company
received about €15 million in state-guaranteed financing in June. Management used about €10 million of the proceeds to refinance an expiring credit line, reducing the company’s net liquidity benefit to about €5 million.
Pronovias was able to continue cash collections from orders previously shipped during the lockdown and had a working capital release. Investors expected a potential liquidity issue to arise in the third or fourth quarter if the company could not generate enough new sales during the summer.
The company received covenant waivers from its four revolving credit facility lenders until March 2021 and BC Partners provided €5 million of equity at the end of 2019 to support the business.
EMEA Covenants analyzed the group’s SFA at the time of the primary issuance of the debt. For a copy of the full report click HERE. The agreement is governed by English law.
-- Luca Rossi