New York - Spanish fashion firm Pepe Jeans has reached an agreement with its creditors to refinance 230 million euros worth of debt over the next five year.
The agreement with its creditors, 14 in total among which are banks such as BBVA, Santander and Caixabank, sealed the refinancing of 230 million euros of the group's debt to five years. The new loan replaces the syndicated loan signed in 2016 for an amount of 250 million euros and with an expiration date in 2021.
On the other hand, highlights EFE, the shareholders of Pepe Jeans have subscribed a capital increase worth of 25 million euros with the aim of "strengthening the solvency and financial capacity of the group, which is necessary to address the growth objectives of the different brands."
Since the company has issued a statement explaining that the restructuring of the debt will allow them to "focus on the development of the business plan that has been launched this year," with the aim of growing their brands, implementing a digitisation plan, and "adapt to the changes that the sector is experiencing".
Pepe Jeans CEO Carlos Ortrega comments on the agreement
Carlos Ortega, founder and CEO of the fashion firm adds that "This agreement reflects the commitment and support of both financial institutions and shareholders of the company, which show their confidence in a group of consolidated brands with a bright future for in front of".
According to the most recent publicly available information, for its last fiscal year - closed on March, 31 of last year - Pepe Jeans declared a profit of 17 million euros, driven mainly by the merger with its footwear subsidiary Pepe Jeans Footwear.
The group operates its own brands, Pepe Jeans, Hackett and Façonnable, and distributes in Spain of Tommy Hilfiger and Calvin Klein.
Photo: Pepe Jeans, official website