ITALY - Permira-led consortium to acquire Valentino debt

If the deal goes through, it would see Citigroup fully exit the company, leaving UniCredit and Mediobanca, which co-led the debt financing of the EUR 2.6bn take-private of Valentino in 2007. Shortly after, when Permira completed the de-listing in May 2008, the share price had already taken a hit, with the company valued at EUR 1.8bn. In August this year, Permira wrote down its investment in the fashion house.

As reported on unquote" in June, negotiations with the lenders started this summer, reportedly resulting in Citigroup writing down its debt to 40 cents in the euro. If Citigroup agrees to the debt buy-back, it would allow Valentino to reduce its debt to EUR 1.5bn.

The luxury fashion brand Valentino generated revenues of EUR 2.2bn with an EBITDA of EUR 320m in 2008.

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• Topics
• Restructuring
• Southern Europe