Luxottica mandates banks to underwrite credit facility

Luxottica Group today announced that it has mandated a group of banks to arrange, underwrite and provide a five-year credit facility of approximately € 1.0 billion.

Enrico Cavatorta, chief financial officer of Luxottica Group, commented: 'The facility is designed to meet our Group's funding needs for the medium-term, including the refinancing of existing debt as it matures. It also firmly puts in place the final piece of the financing necessary for the closing of the proposed acquisition of Cole National Corporation. We were able to secure advantageous terms, with a spread of between 40 and 60 basis points over Libor, depending on the debt to Ebitda ratio. Naturally, we are also pleased to see such a strong show of confidence in our Group from this pool of leading international banks'.

The Mandated Lead Arrangers and Bookrunners appointed are Abn Amro, Banca Intesa, Bank of America, Citigroup, Hsbc, Mediobanca, The Royal Bank of Scotland (Documentation Agent) and UniCredit Banca Mobiliare. UniCredito Italiano will act as Facility Agent.

The five-year facility will consist of three tranches:
- Tranche A: Amortizing Term loan of € 405 million to provide for refinancing of existing Luxottica Group S.p.A debt, as it matures;
- Tranche B: Term loan of US$ 325 million for Luxottica US Holdings Corp., a U.S. subsidiary of Luxottica Group, subject to the closing of the proposed acquisition of Cole National Corporation;
- Tranche C: Revolving Credit Facility of € 335 million-equivalent multi-currency (€/US$).