MERCATOR, d.d., Ljubljana
Refinancing transaction for the super-senior facility completed
In addition to deleveraging and improved credit rating, confidence in the Mercator Group continues to improve as well
Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange d.d. and the relevant legislation, the company Poslovni sistem Mercator d.d. hereby makes the following announcement:
In late May, Mercator Group and VTB Bank (Europe) SE signed the contract documentation for refinancing of the Mercator Group's super-senior facility. By signing the contract documentation, VTB Bank (Europe) SE has expressed its solid support and confidence in Mercator Group's business performance and long-term development. Now, the transaction was effected pursuant to the mentioned contract. In the bidding stage, Mercator received several offers by banks, which stands witness to the considerably improved confidence by these banks in the successful restructuring carried out by Mercator in the last two years.
Refinancing of the super-senior facility, amounting to EUR 80 million, at considerably better terms, is an important part of the pursuit of Mercator's long-term strategy. After the completion of a very successful first stage of Mercator Group's comprehensive restructuring, which included stabilization of operations, value creation plan, a new marketing strategy, and re-entry to the market of Bosnia and Herzegovina, Mercator is today successfully executing further key steps towards the attainment of all strategic goals. In the recent period, Mercator considerably increased its EBITDA and revenue, as well as significantly deleveraged through successful monetization projects. Signing of the refinancing contract, supported by the VTB Bank (Europe) SE, ensures the foundations for completion of financial consolidation, and especially the funds for a new development cycle that will be based on the investment into the new logistics centre in Ljubljana. With successful development and performance, Mercator can also ensure long-term development of suppliers in Slovenia and the broader region. As the region's largest retailer, Mercator is the backbone of food growing and processing in Slovenia and the region.
As of July 2, 2019, this announcement will also be published on the company website at www.mercatorgroup.si where it shall remain available for a period of no less than 5 years.
Poslovni sistem Mercator d.d.