SoLocal: a refinancing agreement allows it to “secure the contribution of 117 million euros”

by bold-lichterman

The SoLocal group (formerly Pages Jaunes, converted into Internet services) in financial difficulty due to Covid-19, announced Friday that it had reached a refinancing agreement with its main creditors, based in particular on a capital increase. The agreement, which must be approved by a general meeting of shareholders scheduled for July 24, allows “ secure the contribution of 117 million euros in liquidity and would reduce our debt by more than 250 million euros “, indicates SoLocal (2,800 employees) in a letter to shareholders made public by the company.

In detail, the plan offers creditors to participate in a capital increase of 347 million euros, in exchange for a cash contribution of 85 million euros and the balance in debt reduction. Current shareholders will be able to participate in the capital increase if they wish to avoid a very strong dilution of their participation. If none of the current shareholders subscribed to the capital increase, their overall stake would be reduced to 9.8%, Pierre Danon, chairman of the board of directors, told AFP.

The American fund Golden Tree, the main creditor of SoLocal, would become at the end of the plan a reference shareholder of SoLocal, with at least 15.5% of the capital at the end of the operations. The listing of SoLocal, suspended since June 13, is due to resume Monday. The group estimates that it has lost 140 million euros in turnover over two and a half months of confinement.