Clariane Strengthens Its Financial Structure to Overcome a Sharply Deteriorated Access to Financing - Seite 3

In this context, the Group drew on 3 November its RCF (Revolving Credit Facility) lines for a total amount of 500 million euros for 6 months.

Since then, access to real estate and corporate financing, as provided for in the financing path communicated in July 2023, has been significantly reduced, jeopardising the refinancing of the various short-term maturities occurring between today and June 2024, for an amount of approximately €650 million, corresponding mainly to real estate and Schuldschein debts, as detailed in section 1.3, and thus compliance with the financial covenants.

1.3 Liquidity and financial structure issues of the Group:

With the reduction of its financial leverage and the control of its level of debt as its key objectives, the Group has undertaken, since the beginning of the 2023 financial year, a significant reduction in its investments. At the same time, it has pursued its strategy of strengthening its equity capital through partnerships involving its operating assets.

These commitments have been considered in the documentation of the syndicated loan that was renewed in July 2023, expiring in May 2026, and which includes:

• the gradual reduction of the leverage covenant from 4.5x in June 2024 to 3.75x in December 2025¹ ,
• a loan-to-value covenant² with a threshold of 65%,
• a definition of a minimum cash position of 300 million euros³ , restrictions on the use of the Group's cash if its operating leverage remains above 3.5x (prohibition on dividend distribution) and above 3.0x (use of all proceeds from disposals (excluding property) for priority early repayment to lenders and restriction on repayment of GBP hybrid debt, ODIRNANEs and all debt treated as equity unless refinanced with similar debt).

As a reminder, the Group has 837 million euros of debt maturing between now and 30th June 2025, the main debt maturities of this period are listed below:

• 178 million euros in December 2023 (Schuldschein)
• 190 million euros between December 2023 and February 2024 (real estate debts)
• 50 million euros in May 2024 (non-extended portion of Term Loan)
• 20 million euros in May 2024 (bilateral bank line)
• 108 million euros in December 2024 (Schuldschein)

The remaining amount includes mainly the amortisation of long term real estate financing.

2. Plan to strengthen Clariane's financial structure

The plan announced today is designed to secure and accelerate Clariane's debt reduction path and enable the Group to benefit from a financial structure adapted to a more challenging economic environment due to inflation, rise in interest rates and more difficult debt and real-estate markets, and finally to provide some room for manoeuvre in the execution of its strategy.