Alantra advises Feu Vert on a €185 million refinancing transaction that optimizes the cost of debt
Paris – Alantra announces that it has advised Feu Vert – a leading car maintenance and after-sales retailer, majority owned by Alpha Private Equity – on a debt refinancing transaction. The deal involved a group of mandated lead arrangers and participants, coordinated by BNP Paribas – for the senior financing and private debt fund, Oquendo Capital, for the mezzanine financing.
With 50 years of experience in the world of car maintenance and equipment, Feu Vert now has around 6,500 employees in Europe, which meets the needs of its 10 million customers. The Group’s mission is to facilitate and defend the mobility of every driver of cars and motorcycles, by offering services, maintenance, repairs, and equipment in an expert, accessible, and fast way. In recent years, Feu Vert has accelerated its strategy of developing digital activities, B2B, and new mobility. With more than 450 auto-centers in Europe (France, Portugal, Spain), the group is continuing to expand, particularly through franchising.
The new debt amounts to €185 million, with comfortable maturities. This allows Feu Vert to benefit from a lower cost of debt; loan documentation will include ESG indicators with a relation on the level of margins (upward and downward).
The senior debt is composed of three tranches with maturities of six years, six and half years, and seven and a half years, as well as a revolving facility. It is completed by an eight year mezzanine debt. The longer maturities go together with a reduction in the average cost of financing, which has been reduced by approximately 200 basis points compared with the existing financing. The transaction was signed on December 22, 2022 and closed on January 18, 2023.
As part of its commitment to social responsibility, Feu Vert chose to include an ESG criteria which is currently under discussion, in its credit agreement, and will be based on objectives from its own ESG strategy – including an environmental impact objective. Feu Vert will therefore be able to benefit from improved interest rate conditions based on the objectives set by this criteria.
Thierry Sinquin, Chairman and CEO of Feu Vert, said: “The success of this transaction with leading French and international institutions provides Feu Vert with significant resources to pursue its development in a growing market, and demonstrates the confidence of our financial partners in the solidity of our Group and the quality of its business model.”
Pierre-Louis Nahon, Partner at Alantra, said: “We are delighted to have assisted Feu Vert on this refinancing. This transaction will enable the Group to improve its cost of debt and continue its development. We are honored by the confidence Feu Vert and Alpha have shown us and look forward to seeing the company continue its growth trajectory.”
The Alantra team advising in the transaction was comprised of Pierre-Louis Nahon, Olivier Marquet, Alexandre Maroufi, Coppélia Carbonnier.