LONDON Aug 13 German books to cosmetics
retailer Douglas is asking lenders to approve a
change of terms on its 1.1 billion euros ($1.47 billion) of
loans to focus on its perfumeries business, banking sources
familiar with the matter said on Wednesday.
Private equity firm Advent International and the Kreke
family acquired multi-channel retailer Douglas in 2012 which at
the time consisted of Douglas Perfumeries, Thalia Bookstores,
Christ Jewellery stores, AppelrathCüpper Fashion stores and
Douglas bought French perfumery chain Nocibe last
year and earlier this year sold its confectioneries business
With a combined 625 stores and 4,000 employees, the
acquisition of Nocibe made Douglas the second largest perfumery
chain operator in France behind LVMH's Sephora in terms of
Now Douglas is seeking an amendment to terms from lenders to
allow its existing 1.1 billion euros of loans to sit solely on
its perfumeries business, if a sale of any of its other
businesses takes place, the bankers said.
This would enable Douglas to avoid using the proceeds of any
sale to repay debt, they added.
No one at Advent or Douglas was immediately available to
JP Morgan would be handling any sale process of its fashion,
jewellery and book stores, according to the bankers.
At the same time, Douglas is looking to reprice its existing
debt on more favourable terms by reducing interest margins by
0.5 percentage points, the bankers said.
A call took place with lenders on Wednesday who have been
asked to commit to the deal by August 29. Lenders are being
offered a 0.25 percent consent fee, the bankers said.
JP Morgan and UniCredit are handling the amendment and
repricing, they said.
If approved, a 450 million-euro term loan B and a 470
million-euro term loan C will both pay 4 percentage points over
Euribor instead of 4.5 percentage points. A 185 million-euro
revolving credit and capital expenditure facility will pay 3.75
percentage points over Euribor instead of 4.25 percentage
points, they said.
(1 US dollar = 0.7483 euros)
(Editing by Shadia Nasralla, Greg Mahlich; )