Samsonite (01910) issued an announcement on April 12, 2024 (effective date). The date of its entry into force is the second revised and restated credit and guarantee agreement No. 1. Accordingly, it has refunded the B term loan facility of the company and its subsidiaries (Group) in accordance with the second revised and restated credit and guarantee agreement dated June 21, 2023 (existing credit agreement, referred to as the “Credit Agreement” as amended).
The interest rate payable under the B term loan facility after refinancing (2024 B term loan financing) is 75.0 basis points lower than the interest rate previously payable under the B term loan facility of the existing credit agreement.
Loans under the 2024 B Term Loan Facility will be issued at 99.75% of the issue price at a discount on the original issue.
While refinancing was being carried out, the Group borrowed $100 million under its revolving credit facility and used the proceeds to reduce the principal amount of the B term loan facility under the existing credit agreement by US$95.5 million. The loan principal amount under the 2024 B Term Loan Facility was US$500 million.
The interest rate currently payable on loans under revolving credit facility is 77.5 basis points lower than the interest rate payable under the 2024 B term loan facility.
The company estimates that the B term loan facility for refinancing will result in an annual reduction of approximately $4.9 million in cash interest payments for the first full year after the effective date.