ADVEO signs additional financing agreement
| 27 June, 2018
ADVEO has signed an exclusivity agreement with one of the world’s premier fixed income investment managers, with more than $1.0 trillion assets under management, for an investment of €33m in the company, as well changes to the current financing conditions.
This new financing agreement will involve providing ADVEO with enough funds to recover the target stock levels and to continue implementing its Strategic Plan 2017-2020.
The agreement involves reorganizing current existing debt and the creation of a new company where ADVEO Group International will own 100% of its capital, as well as the subordinated debt of €91.4m.
ADVEO had a total net debt of €318m in September 2015. Debt reduction has been one of the main goals for the new management team when they took charge of the company at the end of 2015. In order to achieve this objective, the company implemented different actions, such as disinvesting in certain business channels in EOS and disinvesting in real estate assets up to €18m.
From March 2017 to October 2017 the existing debt was restructured and credit availability was extended to €159.7m, although an additional credit to recover stock availability was still needed.
ADVEO’s net debt at the end of 2017 reached €192m, 40% less than in September 2015.