German perfume chain Douglas agrees $3 billion refinancing

FRANKFURT, March 26 (Reuters) - Private equity-controlled Douglas on Friday said it has agreed at 2.55 billion euro ($3.01 billion) debt refinancing to support its shifts to a growing online business.

“Douglas will consistently expand its potential as Europe’s leading beauty platform and continue to interlink its e-commerce and in-store operations,” Douglas CEO Tina Mueller said.

“The new financing package will give Douglas more leeway to conduct its operative business and for strategic initiatives.”

The package includes a 600 million euro senior secured term loan, 1.305 billion of senior secured notes, 475 million of senior payment-in-kind notes and a 170 million revolving credit line.

Majority owner CVC and the founding Kreke family are providing an additional 220 million euros of equity funding, Douglas said.

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 = 0.8482 euros) (Reporting by Christoph Steitz Editing by Chizu Nomiyama)