Belron, the global leader in vehicle glass repair, replacement and recalibration, confirms that it has successfully allocated a new €800m term loan.
Belron announced on 3 April 2023 that it had launched a syndication in the institutional loan market for a new term loan on a best effort basis. The new USD loan of €800m equivalent has been successfully allocated today and the transaction is expected to close on 18 April 2023.
The key terms of the loan are:
- Total amount of $870m (or €800m equivalent)
- Maturity of 6 years (i.e. April 2029)
- Spread in USD of Sofr + 275bps
- Issue price of 99.50%
The proceeds, together with c.€300m of available liquidity, will be up-streamed to the shareholders of Belron as a dividend.
This transaction optimises Belron’s capital structure with a Senior Secured net leverage ratio at 3.75x whilst maintaining full flexibility for its strategic options.
The launch and successful allocation of this new loan and credit rating upgrade follows a successful period of operational and financial performance.
Following the launch of the loan issue, S&P Global upgraded its long-term credit outlook on Belron to an investment grade “BBB-” rating citing strong operating execution and clear financial policy. Moody’s has maintained its CFR “Ba2” rating referencing Belron’s resilient business model, financial track record and clear leverage policy.
Carlos Brito, CEO of Belron said: “We saw robust demand from credit investors, reflecting Belron’s strength and resilience and outlook as we continue to perform well, supported by long-term structural growth drivers.”
 Senior Secured indebtedness / pro forma EBITDA post-IFRS 16, as defined in Belron’s Credit Agreement and Compliance Certificate for debt lenders.
Belron is the world’s leading vehicle glass repair, replacement, and recalibration group. Our key brands include Carglass®, Safelite® Autoglass and AutoGlass®. We operate in 37 countries across 6 continents through wholly owned and franchise operations and also manage vehicle glass and other insurance claims on behalf of insurance customers. Belron is home to around 29,000 employees who served 15 million customers in 2022 with a focus on service quality generating a very high level of customer satisfaction. More details are at https://www.belron.com/.
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