Delsey signs debt fund club refi

The French luggage company mandated three debt funds for the €100 million refinancing deal.

Avenue Capital, Pemberton and Permira Debt Managers have extended a €100 million refinancing to French luggage brand Delsey. The deal will help drive the company’s rapid growth, the lenders said in a statement. 

The deal refinanced debt originally provided by private lender European Capital which backed private equity firm Argan Capital’s acquisition of Delsey in 2007 with a €120 million unitranche financing. 

Delsey has grown its sales in Asia to €65 million, an increase of 160 percent over the last two years. The firm has forecast sales of €220 million for 2015, an increase of 34 percent over 2014 sales figures. The Asian growth has allowed the luggage maker to diversify from its older, more established markets in Europe and the US. 

“It is clear that the three private debt funds really understand our business, its growth drivers and its markets. The financing solution they provide will help fuel further growth in the U.S., Asia and Europe,” said Delsey chief Guenther Trieb. 

Marlborough Partners ran the competitive tender for the deal mandate. Reed Smith was legal counsel for the borrower while Shearman and Sterling acted for the lenders. 

Delsey, founded in 1946, is owned by Argan Capital, Partners Group and Paris Orleans. Its European head office is in Paris while the US operation is based in Baltimore in Maryland. The Asian head office is in Hong Kong. 

US-headquartered Avenue Capital manages around $13 billion in assets and was founded by Marc Lasry and Sonia Gardner.

Pemberton is an alternative asset management group partially owned by UK insurer Legal & General. It is raising a €1 billion direct lending fund and recently reached a first close of more than €500 million.

Permira Debt Managers, the credit arm of the European private equity firm, closed its €790 million direct lending fund over the summer.