€550 million loan and €320 million bond secure strong growth opportunities
House of HR has successfully completed a refinancing exercise with a value of €970 million. The funding is made up of a loan of €550 million over seven years, a cash credit in the amount of €100 million and a €320 million bond to be issued at the same time. The total operation was supported by JP Morgan and ING, together with KBC and Societe Generale as co-managers. The new cash will go to pay off existing debts, finance a shareholder capital reduction and at the same time ensure the flexibility needed for the HR group’s future growth plans.
The refinancing of the HR group consists of two parts. On the one hand, the group is taking up a loan: €550 million over a period of seven years. The so-called Covenant-Lite loan entails few restrictions. In addition, House of HR has issued a securitised bond to the value of €320 million. The deal was supported by JP Morgan together with ING (and with KBC and Societe Generale as co-managers). The bond will also run for seven years and promises a return of 4.375%. All in all, the deal has been more than doubly over-subscribed.
Rika Coppens, CEO of House of HR, explains the purpose of the refinancing: ‘On the one hand, we want to pay off an existing loan of €600 million ahead of time. Secondly, we want to use it to pay a capital reduction to all shareholders, including our majority shareholder Naxicap Partners. Above all, however, with this financing round we want to create the flexibility we need to achieve our plans for fast growth in the near future. The capital reduction for our shareholders and the new funding give us peace of mind in carrying out the strategic growth plan we envisage for the next 3 to 5 years, with Naxicap at our side. Through this transaction, Conny Vandendriessche increases her share in the group from 23% to around 29%. Naxicap remains the majority shareholder. Some 15% is in the hands of around 200 of the group’s managers’.
Based on an EBITDA of €223.5 million for the last 12 months to March 2019 (LTM earnings), the combination of the loan and the bond will lead to leverage of 3.8.
More info & interview with Rika Coppens, CEO House of HR
Lieven Van Nieuwenhuyze, CMO House of HR: +32 473 65 76 51, lieven [at] houseofhr.com
Aart De Zitter, managing partner BeSpoken, PR-partner House of HR, +32 478 92 09 72, aart [at] bespoken.be
About House of HR
House of HR is the holding company for 9 operating companies representing a total of 34 brands. They work in Specialist Staffing, General Staffing en Engineering & Consulting and have over 500 offices distributed across 10 countries. House of HR is of Belgian origin and is headquartered in Roeselare. The non-consolidated turnover for 2018 came to more than €1.7 billion. For more info, go to www.houseofhr.com.