// EG Group launches three-year amend and extend of its $3.4bn of loans due in 2025 and 2026
// The group said it expects to shave $4.43m off its net debt, which topped $9.8bn
EG Group is in talks to secure a $3.4bn refinancing deal as it looks to reduce its net debt, which neared $10bn in March this year.
The forecourt giant, owned by the billionaire Issa brothers and private equity firm TDR Capital, said on Thursday it launched a three-year amend and extend of its term loans due in 2025 and 2026.
EG said it had “already initiated a process with key relationship banks seeking both an extension of its RCF (revolving credit facility) and banking facilities and has received good support in this process”.
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The group sold its UK and Ireland operations to Asda last month in a £2.27bn deal which it said “has delivered significant funding for the group to address upcoming maturities through material debt repayment”.
The proceeds from the sale together with earlier deals, including a $1.5bn sale and leaseback in the US, will allow the group to reduce its net debt to $5.37bn, with net leverage expected to fall from 6.3 times to 4.9 times.
EG Group co-chief executive Zuber Issa said: “The group has now delivered a combination of strategic actions, including the US sale & leaseback transaction – which delivered net proceeds of $1.4bn – that will enable us to significantly reduce our overall leverage to below five times, in line with our financial policy and deleveraging strategy.
“We will now be addressing our upcoming maturities, including a three year amend and extend of our term loans, which will help us to put in place a sustainable long-term capital structure.
“We remain committed to achieving a net leverage multiple of mid four times in the near term.
It comes as the group posted a 13% drop in first-quarter EBITDA to £181.8m, which it said was “the result of oil price volatility in the current and previous comparable quarter”.
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