3i's Action in €1.675bn refinancing

Alice Tchernookova
16 December 2016

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3i-backed Dutch retailer Action has secured a €1.675bn refinancing arranged by a consortium of banks, which will return £187m to the GP.

The all-senior debt package comprises a €1.6bn term loan B and a €75m revolving credit facility. Proceeds from the term loan will be used to refinance existing debt and finance a distribution to shareholders, the GP said in a statement.

3i said the £187m in proceeds is expected before the end of December 2016.

ABN Amro, BNP Paribas, Deutsche Bank, ING, Natixis and Rabobank International were mandated to arrange the debt refinancing. The transaction also received support from a syndicate of other banks and funds, with both existing and new lenders committing to the facilities.

The GP said Action has grown its number of stores from 245 to 840 in the Netherlands, Belgium, France, Germany, Luxembourg and Austria under 3i's ownership. The company's growth and cash generation is what has allowed the business to de-leverage and take on further financing, the GP added in a statement.

Previous funding
In July 2011, 3i acquired a majority stake in Action as part of a management buyout valued at €500m. The investor's announced strategy was to support the company's international growth by opening new stores, particularly in the Netherlands, Belgium and Germany. 3i invested via the vehicle Eurofund V.

An all-senior financing package was arranged by Rabobank to support the transaction, with a syndication scheduled for the weeks following the deal.

Company
Located in Medemblik, north Holland, Action is a Dutch retail group established in 1993. The company's product range includes household and office supplies, cosmetics, food, toys, textiles, glass, porcelain, pottery, seasonal items, decorations and DIY tools.

People
3i – Robert Van Goethem (partner).