Note 36 - Events after the reporting period
State-backed loan for €465 million and signature of an agreement to amend and extend the maturity of the revolving credit facility to March 2023
In view of the uncertainty surrounding the ongoing health crisis, the Lagardère group has consolidated its financial position by arranging a state-backed loan and amending and extending the term of its revolving credit facility. These agreements took effect in early January 2021.
Lagardère arranged with its main French and European banking partners a €465 million loan, of which 80% is guaranteed by the French state. The loan was validated by publication of the decision of the Ministry of the Economy, Finance and Recovery dated 31 December 2020 in France’s Official Journal of 3 January 2021. On 8 January 2021, the Group drew down the full amount of this loan.
The maturity of the state-backed loan is 12 months, with an extension option for up to five additional years. This option may be exercised at the Company’s discretion at the end of the initial one-year term.
At the same time, Lagardère amended and extended the maturity of its revolving credit facility with its banking partners, which involved:
- adjusting the amount of the facility to €1.1 billion;
- extending the term of a €1.0 billion tranche from May 2022 to March 2023;
- redefining the covenants over this period to take account of the impacts of the health crisis on all of the Lagardère group’s businesses.