Dia agrees to a change in its capital structure and avoids the risk of refinancing

The chain expects a net sales volume of between 6.3 and 6.6 billion by the end of the year in 2020.

Supermarket archive image Dia.

The Dia supermarket group today announced the agreement that makes the transformation of its capital structure possible. The operation eliminates refinancing risks, reduce debt by 40% and establishing the debt maturity profile so that it better aligns with long-term objectives.

This has been possible, as reported by the company to the National Securities Market Commission (CNMV), thanks to the consensus among the syndicated creditors, as well as the support offered by the reference shareholder LetterOne.

Grupo Dia’s executive president, Stephan DuCharmen, assures that it is a “transformative” agreement, since it “aligns all the key financial stakeholders for Día and provides a solid and stable capital base that will support the successful achievement of our business transformation ”.

Sales prospects

In the statement, Dia also reveals its perspectives for the end of the year. The chain expects a net sales volume between 6.3 and 6.6 billion by the end of the current fiscal year.

“During 2020, the Group has had a positive performance in sales and in adjusted EBITDA. Now, we will accelerate the second phase of the business plan and I am confident that we will continue to advance in 2021 and in the years to come, ”said DuCharmen.

The company values ​​the figures positively, since after the agreement reached, they allow the group “to focus exclusively on achieving its business transformation plan.”

Agreement points

In this way, Dia manages to convert 500 million euros of debt into equity through DEA ​​Finance. As well as an extension of the maturity of 300 million in bonds, which are extended from April 2023 to June 2026. According to the company, 89.7% of these bonds were acquired by DEA Finance last August.

On the other hand, the syndicated creditors will extend the maturity of the syndicated loan of 902 million, which goes from maturing in March 2023 to December 2025.

Lastly, Dia has agreed to prepay 35 million of the supersenior loans granted by the aforementioned syndicated creditors. In addition, the remaining 36 million will be paid in July 2022.