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German perfume chain Douglas in 2.1 bln eur refinancing to fund e-commerce drive

DUESSELDORF, Germany, March 12 (Reuters) - Private equity-controlled Douglas launched a 2.1 billion euro ($2.5 billion) debt refinancing, Refinitiv LPC reported on Friday, as the German perfume retailer shifts resources to a growing online business.

In a statement on Friday, Douglas said it had launched the syndication of a loan facility worth 1.08 billion euros and that it may take out more debt, depending on market conditions.

Refinitiv LPC said the total debt package was worth 2.1 billion euros.

Douglas said the proceeds would be used to repay existing senior secured notes due in 2022 and 2023 as well all amounts outstanding under the company’s existing senior secured facilities.

Majority owner CVC and the founding Kreke family are injecting an additional 220 million euros in fresh equity, a person familiar with the matter told Reuters.

Douglas declined to comment beyond its statement.

The retail chain has been hit by lockdown measures during the coronavirus pandemic with sales dropping 7.1% to 1.2 billion in the October-to-December quarter. It has been investing to expand its fast-growing online business. ($1 = 0.8386 euros) (Reporting by Matthias Inverardi Writing by Ludwig Burger Editing by Jonathan Oatis)

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