MILAN — Safilo Group SpA has secured a new term loan facility amounting to 108 million euros.
The Italian eyewear manufacturer said Tuesday that the new term loan would support “investment needs for activities located in Italy, supporting the business in a period still characterized by a high level of uncertainty surrounding the recovery of the industry.”
The term loan, which matures on June 30, 2026, was granted by a pool of banks including BNP Paribas, ING Bank, Intesa Sanpaolo, UniCredit and Agente, and it is guaranteed for 90 percent of its value by SACE, the Italian export credit agency under the terms of the “Liquidity Decree” signed by the country’s government in April as part of the financial aid it pledged to local companies in the wake of the COVID-19 outbreak.
Safilo Group said the repayment of the term loan would start in September 2023 through 12 quarterly installments. The loan is unsecured and pari-passu with a previous term and revolving credit facility amounting to 150 million euros signed in 2018.
As reported, the disruption caused by the pandemic in the months of April and May dragged down Safilo Group’s bottom line and revenues in the first half, but the eyewear company reported a recovery in June, more significant in Europe, and a sales rebound in July.
In the six months ended June 30, Safilo registered an adjusted net loss of 63.7 million euros, compared with an adjusted net profit of 8.5 million euros recorded in the same period last year. Revenues fell 32.3 percent to 335.6 million euros compared with 495.9 million euros in the first half of 2019.