19-3-2010
Maxeda DIY lowers debt position
Agreement on debt buy back with a nominal amount of EUR 462.5 million
• Maxeda takes advantage of financial market opportunity
• Debt buy back at discount to par
• Significant improvement of balance sheet and financial ratios of Maxeda DIY
• Maxeda’s shareholders contribute additional Equity
Maxeda Retail Group B.V. (“Maxeda”) announces that its Executive Board and Supervisory Board have reached agreement on a debt buy back of EUR 462.5 million by Maxeda DIY at a discount. The transaction will be financed by new subordinated debt of EUR 170 million (arranged by KKR Capital Markets), by existing cash and an equity contribution by Maxeda’s existing shareholders. The works councils have responded positively to the agreement.
Tony DeNunzio, Executive Chairman Maxeda: “We are pleased to take advantage of this financial market opportunity. The repurchase of Maxeda DIY’s debt supported by our shareholders shows the confidence our investors have in the strategy and growth potential of Maxeda DIY. By improving our balance sheet we have realized a strengthened financial structure. This stronger financial position enables us to further invest in new and existing stores in order to support Maxeda DIY's retail leadership strategy.”