LONDON, Nov 7 (LPC) - Swiss luxury watchmaker Breitling has raised a €269m leveraged loan, to repay €100m of more expensive swiss franc-denominated debt, repay borrowings under a revolving credit facility and facilitate an approximate €130m dividend to shareholder CVC, banking sources said.
Deutsche Bank led the financing, which allocated on Europe’s secondary loan market at 99.75 on November 7, alongside Bank of America, BNP Paribas, Credit Suisse and UBS.
The loan pays 350bp, in line with Breitling’s existing euro term loan B. That is significantly cheaper than the 425bp the company was paying on its Swiss franc loan.
The loan will also repay around €30m of RCF drawings, with the rest used to pay a shareholder dividend. Existing lenders received a 12.5bp consent fee.
The loan was originally launched in October at €169m, to repay the RCF drawings and pay a dividend, but was increased by €100m following strong investor demand for the paper.
CVC was not immediately available to comment.
Breitling raised a SFr379m-equivalent term loan in July 2017 to back the company’s buyout by CVC.
Breitling specialises in the development and manufacturing of high-performance watches.
Editing by Christopher Mangham