Eroski reached an agreement with its creditors to restructure its debt worth of EUR 2,605 million until 2019. The agreement is in line with the retailer aim for its EBITDA to be EUR 250 to 300 million a year.
- The senior debt is valued at EUR 800 million and is linked to the retail operations and is stretched over 5 years with an interest ranging from 2.5 to 5%, depending on the cash flow of the company.
- The debt relating to divestitures, ia worth EUR 300 million and is subject to amortization through the sale of non-strategic assets.
- The non structural debt is worth EUR 942 million and is linked to the improvement of EBITDA, is stretched over five years at an average interest rate of 3.75% with a grace period of 12 months.
- The debt relating to real-estate, is valued at EUR 563 million, will not impact the company and will be subject to the real estate business of Eroski.
The retailer plans to continue restructuring its stores to the “contigo” model and expand its franchise stores network.