Capital/Financing Update • Jul 8, 2015
Capital/Financing Update
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Not to be distributed directly or indirectly in the USA, Canada, Australia or Japan
Saint-Quentin en Yvelines, July 8, 2015
Following the settlement of the IPO on June 29, 2015, Europcar has reshaped its capital structure and enhanced its corporate credit profile as initially planned. Thanks to the implementation of its Fast Lane transformation plan, Europcar strengthened its business model leading to a strong improvement of its financial performance and credit profile. Europcar initiated in 2014 an in-depth reshaping of its financing structure to take advantage of it operational transformation and to benefit from supportive market conditions.
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On July 6, 2015, the existing bonds1 €324m bond 11.5% due 2017 and €400m bond 9.375% due 2018, have been fully redeemed with a portion of the proceed of both, the €475m capital increase2 from the IPO, and the new €475m bond 5.75% due 2022 issued on May 27, 2015 that was contingent on the IPO.
As a result, the corporate leverage3 has significantly been reduced and is expected to be below 1.5x by the end of 2015 compared to 2.7x at the end of 2014. This allows the company to maintain enough financial flexibility to support its growth strategy.
As a result of the deleveraging and based on the improved profitability of the company over recent years, the rating agencies, Moody's and S&P, revised the Group ratings.
Moody's has upgraded the corporate rating (stable outlook) by 2 notches to B1 from B3 (positive watch).
S&P has assigned a B+ corporate rating (stable outlook) from B (positive watch).
"The success of our IPO, in a volatile market, proves that our strategy, our leadership position in an expanding market and our business model, together with favorable structural trends, offer solid foundations for profitable growth. With a strengthened capital structure, we benefit from stronger leverage to accelerate our development in the mobility market and continue the deployment of our Fast Lane transformation plan." declared Caroline Parot, Deputy CEO Finance.
1 Including payment of redemption premium for a total amount of €56 million
2 Net proceeds amounted to approximately €441 million
3 Defined as Corporate Net Debt to Adjusted Corporate EBITDA
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Europcar is one of the leading mobility players in Europe. Present in over 140 countries, the Group provides customers with one of the largest vehicle rental networks through its own operators, franchisees and partnerships. Europcar Groupe operates worldwide its own brands Europcar® and InterRent® , which is its low cost brand. The group puts customers at the heart of its mission whether it is innovation or service. All the employees of the group are committed to delivering customer satisfaction. Europcar actively promotes corporate social and environmental responsibility. Europcar was named again in 2014, for the 6th consecutive year, the "World's Leading Green Transport Solution Company" by the World Travel Awards.
Nathalie Poujol +33 1 30 44 98 82 [email protected]
Aurélia Cheval +33 1 30 44 98 98 [email protected]
Bénédicte Constans +33 1 58 47 85 33 [email protected]
Not to be distributed directly or indirectly in the USA, Canada, Australia or Japan
No communication and no information in respect of this transaction or of Europcar Groupe may be distributed to the public in any jurisdiction where a registration or approval is required. No steps have been or will be taken in any jurisdiction (other than France) where such steps would be required. The issue, the subscription for or the purchase of Europcar Groupe's shares may be subject to specific legal or regulatory restrictions in certain jurisdictions. Europcar Groupe assumes no responsibility for any violation of any such restrictions by any person.
This announcement is not a prospectus within the meaning of Directive 2003/71/EC of the European Parliament and the Council of November 4th, 2003, as amended, in particular by Directive 2010/73/UE in the extent such Directive has been transposed in the relevant member State of the European Economic Area (together, the "Prospectus Directive").
With respect to the member States of the European Economic Area which have implemented the Prospectus Directive (each, a "relevant member State"), other than France, no act ion has been undertaken or will be undertaken to make an offer to the public of the shares requiring a publication of a prospectus in any relevant member State.
The distribution of this press release is not made, and has not been approved, by an "authorized person" within the meaning of Article 21(1) of the Financial Services and Markets Act 2000. As a consequence, this press release is directed only at persons who (i) are located outside the United Kingdom, (ii) have professional experience in matters relating to investments and fall within Article 19(5) ("investment professionals") of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (as amended), (iii) are persons falling within Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (iv) are persons to whom this press release may otherwise lawfully be communicated (all such persons together being referred to as "Relevant Persons"). The shares are directed only at Relevant Persons and no invitation, offer or agreements to subscribe, purchase or otherwise acquire the shares may be proposed or made other than with Relevant Persons. Any person other than a Relevant Person may not act or rely on this document or any provision thereof. This press release is not a prospectus which has been approved by the Financial Services Authority or any other United Kingdom regulatory authority for the purposes of Section 85 of the Financial Services and Markets Act 2000.
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or any other jurisdiction (other than France). Securities may not be offered or sold in the United States unless they are registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or pursuant to an offering exempt from registration thereunder. The shares of Europcar Groupe have not been and will not be registered under the U.S. Securities Act and Europcar Groupe does not intend to make a public offer of its shares in the United States.
The distribution of this document in certain countries may constitute a breach of applicable law. The information contained in this document does not constitute an offer of securities for sale in Canada, Australia or Japan. This press release may not be published, forwarded or distributed, directly or indirectly, in the United States, Canada, Australia or Japan.
Goldman Sachs, or any institution acting on its behalf, acting in the name and on behalf of the Underwriters, may, during a period of 30 days following the date on which the offering price is determined, i.e., according to the indicative calendar, from June 25, 2015 up to and including July 24, 2015 effect transactions with a view to maintaining the market price of Europcar Groupe's shares in a manner consistent with applicable laws and regulations and, in particular, EU Commission Regulation No. 2273/03 of December 22, 2003. Such stabilization activities aim to maintain the market price of Europcar Groupe's shares and may affect the price of the shares.
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