3i makes £165m from Action's €1.2bn third refinancing

José Rojo
11 February 2016

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3i will realise £165m from its €1.2bn refinancing of Dutch discount retail group Action.

According to 3i, the €1.2bn debt restructuring featured a €1.125bn term loan B package and a €75m revolving credit facility.

The listed GP, which has been a majority shareholder in Action since a buyout in July 2011, will receive £165m in proceeds from the refinancing by early March 2016.

The package was arranged by ABN Amro, BNP Paribas, Deutsche Bank, ING, Natixis and Rabobank. The banks were joined by both Action's historic and new lenders.

The fresh debt will replace the €840m all-senior financing facility that Deutsche Bank, BNP Paribas, Rabobank, Natixis and ABN Amro supplied in December 2014.

Previous funding
According to unquote" data, 3i became a majority shareholder in Action in July 2011. At the time, the listed private equity house drew equity from its buyout vehicle Eurofund V to invest alongside the company's management.

The deal, valuing Action at an estimated €500m, was the starting point of Action's expansion plan. 3i, reportedly impressed by the retailer's previous growth, backed a reinforcement of its management team as stores were opened across Europe.

The current refinancing is Action's third since 3i became a shareholder and brings the proceeds reaped by the GP to a total of £323m. In September 2013, the retailer secured a first €275m term loan C from BNP Paribas, Natixis, Rabobank and UBS, netting 3i £58m in proceeds.

This was followed by a €840m debt restructuring in December 2014 that saw 3i reap a £100m dividend. Arranged by Deutsche Bank, BNP Paribas, Rabobank, Natixis and ABN Amro, this second package featured a €780m term loan B and €60m revolving credit facility.

Company
Founded in 1993, Action is a discount retailer that sells household products, office supplies, cosmetics, food, drink, toys and textiles, among other products.

Headquartered in Zwaagdijk-Oost, in north Netherlands, the business operates a network of 657 stores across its home country and Belgium, France, Germany, Luxembourg and Austria.

Employing a global 29,000 staff across the aforementioned countries, the retailer posted €1.5bn in turnover in 2014.

People
3i Group – Robert Van Goethem (partner, head of consumer).