In line with Steinhoff’s policy to review its funding structure, facilities, liquidity and capital structure regularly, Steinhoff Europe today announced that the syndicated revolving credit facility has been successfully refinanced, effectively extending the maturity dates by two years from June 2014 and 2016, to June 2016 and 2018 respectively. In addition Steinhoff Europe took advantage of the current strong European corporate loan environment and increased the facility from €720.5 million to €860 million. The refinancing closed at similar interest rates as those previously negotiated, ranging from Euribor plus 1.25% to Euribor plus 2%.
Director of treasury and financing activities, Stehan Grobler commented “The transaction provides significant benefits to Steinhoff, including sustained borrowing costs, increased financial liquidity and extended maturities. We are pleased to maintain our relationship with 35 international and European participating lenders on continued favourable loan terms and in addition the syndicated loan now includes two new lenders. We are particularly pleased by the extended terms agreed, confirming the vote of confidence in the quality of the European operations’ earnings and assets.”
Africa subsidiaries further diversify and extend debt maturities
Steinhoff also confirmed that various refinancing initiatives have been successfully concluded to extend maturities and commit liquidity on behalf of the African operations. Steinhoff Africa already refinanced R350 million of debt, effectively extending the maturity dates to April/May 2016 at a rate of Jibar+1.6%. Steinhoff’s independently listed subsidiary, JD Group (JDG) refinanced approximately R1.5 billion of debt at terms ranging from Jibar plus 0.76% to Jibar plus 2.03%.
“The JD debt refinancing consists of various trances of listed and unlisted paper. The most noteworthy of these being the listed tranches of R450 million repayable in April 2016 at a rate of Jibar plus 1.65%, and R300 million repayable by April 2018 at a rate of Jibar plus 2.03%” said Grobler.
About Steinhoff International
Steinhoff International Holdings Limited was listed in 1998 on the Johannesburg Stock Exchange (the JSE Limited) and forms part of the JSE Top 40 index, the JSE Industrial 25 index and is included on the JSE Socially Responsible Investment (SRI) Index.
Steinhoff is an active investment holding company. Since inception, its investment strategy has been focused on investing in complementary assets that could provide benefits to, or derive benefits from, the existing businesses within its portfolio. Steinhoff is primarily invested in listed or listable operating subsidiaries and associates.
These businesses operate independently, each with its own investment and growth focus, namely:
· Steinhoff Europe, an integrated mass market retailer of furniture and household goods, predominately serving the discount segment.
· 62% investment in listed entity KAP Industrial Holdings Limited, a diversified southern Africa industrial company operating in the logistics (Unitrans), integrated timber (PG Bison) and manufacturing sectors.
· 56% investment in listed entity JD Group Limited, an emerging market retailer of furniture and household goods, motor vehicles and DIY products, supported by a consumer finance business.
· 20% Associate investment in PSG Group, an investment holding company invested in a variety of complementary assets at various stages of development and maturity.
· A property portfolio comprising commercial, industrial and retail real estate assets throughout the jurisdictions where we operate.