Mango to refinance 500 million euro debt
Spanish fashion brand Mango is trying to refinance a debt that currently amounts to 500 million euros and is due to expire between 2019 and 2020.
The company’s chairman Isak Andic, who was recently honoured with the highest order of merit given by France, is in talks with Santander, CaixaBank and Sabadell to negotiate a an extension for its repayment plan, reported El Confidencial.
The 500 million debt includes a 170 million euro loan that is due to expire by the end of the 2019 financial year, with the remaining 330 million expiring in 2020.
Along with a debt maturity extension, Andic will ask for an interest rate reduction, a measure that will likely depend on Mango’s financial performance in the current financial year. Last year, the chain fell into the red but it expects EBITDA to reach around 150 million in 2018.
Interestingly, the clause mentions the possibility of an ownership change. This means Mango could be up for sale, which would result in creditors having to renegotiate the terms with the new owner.
The possible sale could be linked to Isak Andic’s age, 65, and his difficulties in finding an appropriate successor within his family and circle of support.
Copyright © 2023 FashionNetwork.com All rights reserved.
