3i’s Action adds €275m in financing

The financing was oversubscribed, a testament to Action’s credit quality, says managing partner Menno Antal.

Action, a 3i-backed non-food retailer, has increased its senior debt facilities to €621 million following a bolt-on of €275 million senior term loan C financing, according to an announcement released by 3i Wednesday.

The financing will allow 3i collect £58 million cash distribution from the Netherlands-based retailer. That dividend will be recognised as a realisation proceed and will be included in the firm’s distribution calculation for the 2014 fiscal year. That calculation stands at £723 million, according to the statement.

The add-on financing was arranged by BNP Paribas, Natixis, Rabobank and UBS. “The transaction received strong support from a high quality syndicate of banks and funds, with both existing and new lenders committing to the add-on facility,” according to a statement.

A spokesperson for 3i could not be reached for additional comment at press time.

3i holds a 75 percent stake in Action, which has undergone significant growth since it was acquired by the private equity firm in June 2011. Action’s EBITDA has increased from €71 million in FY 2010 to €99 million in FY 2012, according to a statement. The company rolled out 76 new stores in 2011 and 2012, with an additional 48 stores having opened so far this year.

“New financing commitments were significantly oversubscribed, indicating the quality of Action’s credit,” 3i managing partner Menno Antal said in a statement.