Pronovias can rely on €12 million liquidity consisting of €6 million of cash and €6 million of undrawn facilities, management of the Spanish wedding retailer told lenders today on a call which didn’t feature a Q&A session, according to sources.
The company’s LTM pro forma adjusted EBITDA is €35 million. Year to date, reported EBITDA amounts to €3 million, sources said.
During the call, management focused on the company’s cost-cutting measures and growth initiatives. It said the group continues its retail expansion and that 2021 could see a strong comeback as some operations were simply deferred to next year due to the Covid-19 pandemic. Management added that sponsor BC Partners is supportive of the business.
Pronovias’ capital structure consists of:
- A €215 million first lien term loan paying Euribor+450 basis points due 2024;
- A €60 million second lien paying E+750 bps due 2025; and
- A €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, mostly via a Spanish bank. 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.
The group was affected by restrictions caused by the Covid-19 pandemic and was, like many other retailers, most heavily hit in April when it reported a negative EBITDA. Trading has been recovering since.
Pronovias was able to continue cash collections from orders previously shipped during the lockdown and had a working capital release. As such, 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.
Reorg Debt Explained 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