Forecourt giant EG Group has refinanced $3.5bn of debt as it continues to deleverage and unlock additional cash to invest in the business.
The Blackburn-based group announced today the reprising to euro and dollar term loan notes and the full repayment of its second-lien borrowing facilities.
EG has reprised €1.6bn ($1.8bn) in euro denominated term notes and $1.7m of dollar term notes, reducing margin by 100bp and 125bp respectively.
The group said that additional investor demand for the notes would enable it to fully repay its €610m owed of second-lien lending facilities, as well as the outstanding amounts on previously issued dollar and sterling term notes.
These transactions follow “strong recent progress with the group’s deleveraging plan”, with the group completing a number of non-core asset disposals in the final quarter of 2024 and generating over $400m to repay debt.
This, coupled with the group’s improved trading performance and cashflow, resulted in ratings agency Moody’s upgrading the outlook of the business from negative to stable.
EG said the repricing transactions would “result in a material reduction in EG Group’s annual financing costs and unlock additional free cash flow for the group to invest in growth opportunities”.
Mohsin Issa, CEO and co-founder of EG Group, said: “I am pleased that we have delivered further progress with our successful deleveraging and refinancing strategy, which is central to the execution of our strategic objectives.
“The successful repricing will materially reduce our financing costs, enabling us to invest further in the growth of the business. This transaction is a vote of confidence in EG Group’s strategy and performance from investors. We thank them for their continued support and look forward to pursuing the opportunities ahead of us.”
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