Dia expects to sign refinancing agreement next week
Dia faces the final steps to close its refinancing process prior to the EUR 600m capital increase of 600m that the company has scheduled for March 2019. The group’s BoD, which met on 21 December, will again hold a meeting next week to approve the transaction, Expansion reported citing sources close to the company.
As previously reported, the distribution group will receive EUR 200m from the bank through confirming lines to ensure that the company meets all its obligations until March. It will be then when, once the 2018 results are presented, a company meeting is to be called to approve the capital increase. Dia's intention is also to obtain at least another EUR 200m with the divestments of Clarel and Max Descuento, the two brands it has put up for sale.
The company's board believes this EUR 800m will be enough to reduce its debt and achieve, in the medium term, a better rating from agencies, which this week again sank its note. In the long term, the objective is to lower the price at which the company is financed, which has a bank debt of EUR 900m , apart from an additional EUR 900m in bonds.
The bank will thus provide before the end of the year what Dia needs to put out doubts that came up as a result of the exit of its BoD last Tuesday, of all the advisors that represented Letterone, the main shareholder of the company, with 29%, Expansion added.
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