X5 Retail Group N.V. Raises US $1 Billion Syndicated Loan to Refinance Existing Debt
27 Jun 2007
Amsterdam, 27 June 2007 – X5 Retail Group N.V. (LSE ticker: “FIVE”), Russia's largest retailer in terms of sales, today announces that it has raised US $1 billion through a loan facility with final maturity of 1 year.
The mandated lead arrangers of the loan are Goldman Sachs International and Citigroup Global Markets Limited.
The proceeds of the loan will be used to refinance the Group’s debt, including the existing syndicated loan of US $800 million, which was arranged in 2006 to finance the merger between Pyaterochka and Perekrestok and expansion.
Vitaliy Podolskiy, X5 Retail Group CFO commented: “We are pleased to announce the refinancing of our existing debt on attractive terms that we believe are a testament to the combined strength and financial stability of our enlarged Group. This transaction is a further step in our effort to optimize the Group’s capital structure and enables us to lower funding costs, strengthen our financial flexibility and raise our profile in the international financial community.”
Note to Editors:
X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of 31 March 2007, the Group had 512 company-managed "Pyaterochka" soft discount stores located in the Moscow (232), St. Petersburg (215) and other Russian areas (65), and 169 company-managed "Perekrestok" supermarkets across Central Russia and Ukraine, including 99 stores in Moscow.
As of 31 March 2007, franchisees operated 533 Pyaterochka branded stores across Russia and Kazakhstan. Perekrestok had 10 stores operated by franchisees in the Moscow area.
Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 to create the clear leader in the Russian food retail market.
The Group’s audited pro-forma net sales for the FY 2006 were US $3.551 million, up +50% vs. 2005. Pyaterochka chain provided US $1.973 million of net sales, the Perekrestok chain contributed US $1.496 million of net sales, and Merkado chain contributed US $82 million.
Forward looking statements:
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as” anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal” believe”, or other words of similar meaning.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.
Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
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