Global auto glass company Belron, parent company of Safelite AutoGlass in the U.S., has launched a syndication in the institutional loan market for new term loans on a best effort basis. According to the company, the new loans of $2.6 billion have been successfully allocated and the transaction is expected to close on April 13, 2021.
The key definitive terms, according to the company, include the total amount of $1.9 billion, and a maturity of seven years (April 2028).
The cash received by D’Ieteren Group from Belron following the transaction will allow it to pursue its long-term investment strategy, the company noted in a release. D’Ieteren Group acquired Belron in 2017 and it currently owns the majority of its shares. Belron will use slightly more than $1 billion of the proceeds from the split jurisdiction deal, along with $725.2 million of cash on its balance sheet to fund a payday for its owners: publicly traded D’Ieteren Group and private equity company Clayton, Dubilier and Rice. The remainder of the loan will go towards refinancing the company’s existing debts, officials reported.
The loan follows several European branch closings from Belron, in addition to layoffs for its American brand Safelite. The company has previously stated that the onset of the pandemic contributed to a decline in windshield demand and sales.
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All figures provided are in US Dollars.