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Pepe Jeans signs syndicated loan for 300 million euros

By Angela Gonzalez-Rodriguez


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Good news for Pepe Jeans: the fashion firm property of Lebanese group M1 just closed a syndicated loan of 300 million euros with fifteen banks. Moreover, Alba Corporation hitherto reference investor, has completed its exit from the retailer.

As highlighted by 'Expansion', the operation managed by BBVA, Santander and CaixaBank, has two objectives: to partially fund the acquisition of the firm and ensure resources for its operation.

Specifically, the new financing consists of a total of 250 million euros extended to various group companies and a credit line of 50 million euros.

Fifteen banks signed syndicated loan for Pepe Jeans

Sources close to the operation said that Pepe Jeans barely had bank debt and that all of the financing will be amortised over five years at an interest rate of 200 basis points above the Euribor.

The fifteen financial institutions that have participated in this syndicated loan are BBVA, Santander and CaixaBank with 50 million euros each. In addition, the UK parent Barclays and Bankia, Sabadell Banca March and the Institut Català de Finances (ICF) have contributed to a lesser extent to the loan.

It is worth of recalling that earlier this year, the Lebanese investment group M1 took control of the firm hand in hand with LVMH’s L Capital. The transaction valued at 730 million euros the Spanish fashion retailer.

In a first phase, Torreal, the investment firm owned by Juan Abelló; the Management Artá ​​Capital, owned by the March family, and L Capital, the venture capital fund of LVMH, sold 58.9 percent of Pepe Jeans through an organised process which also involved the fund PAI Partners.

Now, Corporacion Financiera Alba has completed the sale of its 12 percent stake in Pepe Jeans by 81.8 million euros, as reported in a statement to the National Securities Market Commission (CNMV).

The transaction was effected through Deyá Capital after obtaining the authorisation of the competition authorities, reports Telecinco News.

Pepe Jeans