SWITZERLAND. Leading travel retailer Dufry has entered into a definitive agreement with its banking partners to expand its current Revolving Credit Facility (RCF) agreement by €180 million to €2,265 million.
As reported, Dufry recently joined forces with leading travel food services group Autogrill to create a new travel retail to dining powerhouse. Autogrill’s lending banks have partially participated in the financing extension (Accordion option).
The RCF can be further increased up to three times during the lifetime of the facility, which matures in December 2027. Based on the interest received, Dufry expects to take up this option later in 2023.
The company said in a statement that “with the increased RCF, Dufry is well set up for any upcoming financing requirements. The Accordion option gives the possibility for existing banking partners to increase exposure and for new banks to participate in the financing of the combined group.”
It received a rating upgrade from S&P Global to BB- and CreditWatch Positive in March.
Moody’s Investors Service also recently upgraded the company’s credit rating to Ba3 from B1 and changed the outlook to ‘positive’ from ‘stable’ This resulted in 50bps improved average margin for borrowings under its RCF.
Dufry Chief Financial Officer Yves Gerster commented: “The increased RCF comes with a number of advantages. We are more flexible in terms of debt repayment compared to issuing new debt. As the RCF is already successfully set up, no additional documentation is needed for using the Accordion option.
“Most importantly, the RCF increase allows to include Autogrill’s current lenders and to keep a strong relationship with Italian banks. We expect additional steps later in the year. We are thanking our existing and new lending banks for their participation and support.” ✈
