SWITZERLAND. Dufry Group is to issue bonds to an approximate value of US$500m in order to pay early part of an existing syndicated loan. The company said the proceeds from the eight-year bonds will improve the maturity of its financial indebtedness, with the original syndicated loan due to mature in August next year.
The notes will initially be placed with qualified institutional investors in Switzerland and abroad, with exact terms and conditions to be finalised in the coming days.
Dufry said: “Through accessing the international debt capital markets, Dufry will diversify its funding sources and extend the maturity profile of its indebtedness. As the majority of the company’s cash flows are in US dollars, the sale of dollar-denominated notes will help to match the currencies of the company’s income and liabilities.”
Earlier this week Dufry issued 2.69 million new shares, resulting in gross proceeds of CHF294 million (US$315.19 million). The company said the offering would finance its 51% acquisition of Folli Follie’s travel retail interests, confirmed this week, as well transaction costs and shareholder structuring.
The group did not link the bond issue to the Folli Follie deal.