Published: 28-03-2019 22:52
Stern Groep N.V., the listed Dutch mobility group in automotive retail and services, announces that it has agreed a new arrangement with its financing banks ABN AMRO, ING and Rabobank in the event that the shareholders approve the sale of SternLease to ALD Automotive on 31 May 2019.
Refinancing after sale of SternLease
A 3-year arrangement has been agreed with ABN AMRO, ING and Rabobank for € 60 million based on a borrowing base that will be determined in the same way as the current Retail Financing Facility. ABN AMRO and ING will participate with € 22 million each, and Rabobank with € 16 million. Due to the positive cash flow, the new arrangement will be reduced by € 3 million (€ 1 million per bank) one year after 31 May 2019 and by a further € 3 million (again € 1 million per bank) to € 54 million the year after that. With regard to the covenants, it is agreed that the ICR will be set at not less than 2.50 measured on a 12-month basis until 30 September 2019 and thereafter at 3.00, while per quarter the ICR must be at least 3.00. The solvency ratio adjusted for goodwill has to be at least 30% at all times after the sale of SternLease, while a minimum of 35% will be maintained for as long as the guarantees and indemnities under the agreement with ALD Automotive continue to apply.
Due to the changed profile of Stern Group, the margin over 3-month Euribor (with a minimum of 0%) will be increased by 25 basis points in comparison with the current Retail Financing Facility to 2.25%. If the shareholders do not approve the sale of SternLease to ALD Automotive at the General Meeting on 9 May 2019, the current credit facilities that mature at the end of June 2020 will remain in effect. The current bank facilities amounting to € 281 million consist of a Retail Financing Facility with a limit of € 80 million, a Securitisation Facility with a limit of € 171 million and a separate facility for financing lease vehicles not included in the securitisation of € 30 million. Due to the sale of SternLease, the audit by the accountant has not yet been finalized. The 2018 results of Stern Group will therefore be published no later than 21 March 2019 instead of 7 March 2019.