Oriflame Cosmetics has signed a new revolving credit facility amounting to €110 million ($131 million) in total with its existing core relationship banks HSBC Bank, ING Bank, Nordea, Raiffeisen Bank International and SEB.
The new five-year facility replaces the existing €330 million ($394 million). As a result of reduced net debt levels over the last years, the new facility has been sized accordingly. The new facility will be used for general corporate purposes, primarily to cover for quarterly cash flow fluctuations within the calendar year.
The facility was coordinated by Nordea and SEB, who also acted as mandated lead arrangers together with HSBC Bank and ING Bank. Raiffeisen Bank International participated as lead arranger.
As part of the refinancing process, the covenants for the company’s existing private placement notes and the new revolving credit facility were aligned.
“We are very pleased with the long-term relationship we have established with our core banks and note holders. Having completed the refinancing with our current group of core banks and aligned the covenants with our note holders, we look forward to continued good cooperation both through central financing and ancillary services in the various regions where we operate,” said Gabriel Bennet, CFO Oriflame Cosmetics.
Headquartered in Luxembourg, Oriflame is a beauty company selling direct in more than 60 countries.