Successful Closing of the Financial Restructuring of Europcar Mobility Group1 the Group Opens a New Chapter in Its History, With Renewed Ambitions
Europcar Mobility Group2 (Paris:EUCAR) announces today the finalization of its balance sheet restructuring, thanks to the successful completion of the final steps of the accelerated financial safeguard plan approved by the Paris Commercial Court on February 3rd, 2021.
This will enable the Group to accelerate the implementation of “Connect”, its strategic roadmap, while actively preparing for the progressive recovery of domestic and international travel.
Caroline Parot, Chief Executive Officer, stated:
“Today, it is with great ambition that we are opening a new chapter in the history of Europcar Mobility Group: with a significantly reduced corporate debt, the injection of new money combined with new fleet financing facilities, as well as the support of our new shareholders, we are ‘back in the game’.
We will now focus on rolling out “Connect”, our strategic roadmap, at an accelerated pace, with the objective to make our Group a leader in flexible, sustainable, connected and digital mobility solutions. In parallel, our teams, which are strongly mobilized, are actively preparing for the summer and the perspective of a progressive recovery of domestic and international travel.
In line with this, we will soon announce the launch of new services and offers: flexible mid & long-term subscription solutions for companies and businesses; 100% digital proximity service in urban environment, operated by Europcar; reinforcement of our fast & contactless, ‘direct access’ to vehicles offer in airports and railway stations, and consolidation of our international partnerships.”
1 Capitalized terms not defined in this press release have the meaning given to them in the prospectuses approved by the AMF.
2 The “Company”, and together with its consolidated subsidiaries, the “Group”
The significant reduction of the Group’s debt, as well as the injections of new cash and the refinancing of the RCF, have been finalized today as part of the final completion of:
- the settlement-delivery transactions of (i) the capital increase with shareholders’ preferential subscription rights for a total gross amount, including issue premium, of EUR 50,104,964.79, (ii) the capital increase with waiver of the shareholders’ preferential subscriptions rights in favor of the Noteholders having undertaken to subscribe during the period opened in accordance with the Lock-Up Agreement (or any assignee of such subscription rights) and the Guarantor Noteholders, for a gross amount of EUR 199,999,997.92, to be subscribed for in cash, (iii) the capital increase with waiver of the shareholders’ preferential subscription rights in favor of the Noteholders, in proportion to their Notes, on the reference date, for a gross amount of EUR 1,083,406,220.38, to be subscribed by way of set-off against the amount of liquid and due debts held by the Noteholders, on the reference date and (iv) the capital increase with waiver of shareholders’ preferential subscription rights in favor of the CS Lenders, in proportion to their CS Debts, on the reference date, for a gross amount of EUR 50,397,304.68, to be subscribed by way of set-off against the total amount of liquid and due CS Debts held by the CS Lenders on the reference date;
- the allocation of (i) 401,251,214 Backstop Warrants to the Backstopping Noteholders (in counterparty of their Backstopping Commitments), exercisable for a period of 6 months, giving the right to subscribe to a maximum number of 401,251,214 new shares at a price of EUR 0.01 per new share (without issue premium), (ii) 75,234,602 Participation Warrants to Noteholders and Backstopping Noteholders who effectively participated in the Refinancing of the RCF (in counterparty for their effective participation in the New Senior Credit Facilities), exercisable for a period of 6 months, giving the right to subscribe to a maximum number of 75,234,602 new shares at the price of EUR 0.01 per new share (without issue premium), and (iii) 75,234,602 Coordination Warrants to Members of the Coordination Committee (in counterparty for their time and efforts in negotiating and structuring the Financial Restructuring as well as for their overall coordination role in the context of the Financial Restructuring), exercisable for a period of 6 months, giving the right to subscribe to a maximum number of 75,234,602 new shares at a price of EUR 0,01 per new share (without issue premium);
- the setting-up of a new cash line intended to ensure the fleet financing of the Group for an amount of EUR 225,000,000; and
- the refinancing of the RCF through the provision to the Group of a new cash line, for an amount of EUR 170,000,000, and the provision to the Company of a new term loan for an amount of EUR 500,000,000, expiring in June 2023.
The “Effective Restructuring Date” of the Company has therefore been set as at February 26th, 2021.