Econocom completes €240m Schuldschein refinancing

Econocom has strengthened its balance sheet after completing a €240 million Schuldschein private placement, allowing the company to refinance the majority of its debt maturities due in 2027 and 2028 well ahead of schedule.

The transaction, which was initially launched with a target size of €100 million, was significantly oversubscribed, enabling the Group to more than double the amount raised and reflecting strong investor confidence in its strategy and financial performance.

The Schuldschein financing comprises three-year and five-year tranches denominated in euros, with the majority issued at floating interest rates.

Proceeds from the placement will be used to refinance Econocom’s existing Schuldschein debt maturing in 2027 and 2028. The company has now fully refinanced its €132 million 2027 maturity and covered 70% of its 2028 refinancing requirement, replacing €108 million of the €155 million due that year.

Econocom said the successful placement underlines investor confidence in the Group’s diversified business model, strategic direction and financial strength.

The refinancing also extends the maturity profile of the company’s debt, reinforcing its proactive approach to liability management while increasing financial flexibility as it continues to execute its long-term growth strategy.

The transaction was arranged by Commerzbank and Landesbank Baden-Württemberg as Joint Lead Arrangers, with ABN AMRO, Crédit Agricole CIB and Crédit Lyonnais acting as Co-Lead Arrangers.

Philippe Renauld, Managing Director Finance and M&A of Econocom Group, said the level of demand demonstrated investors’ confidence in the business and provided the company with greater flexibility to execute its strategic plans.

“This transaction is a strong testament to investor confidence in Econocom’s business model and financial discipline. It also aims to support the transformation of the Group and the execution of the one Econocom plan,” he said.

“The level of oversubscription allowed us to significantly upsize the placement and proactively address our upcoming maturities. We have now fully covered our 2027 refinancing needs and a large portion of 2028, materially extending our debt maturity profile toward 2029 and 2031 and further strengthening our financial flexibility.”