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GrandVision Secures Additional Funding, Announces Amendment to Credit Facility

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SCHIPHOL, The Netherlands—GrandVision NV (EURONEXT: GVNV), the international optical retail group, said Monday that it has obtained an additional liquidity facility of €400 million as well as an amendment to its existing (2019–2024) €1.2 billion revolving credit facility (RCF), which provides financial covenant relief for 2020. “This additional liquidity facility of €400 million, which is provided by five of GrandVision’s relationship banks, will be available in the event that the RCF is fully drawn,” the company’s announcement noted.

The term is one year with an additional year available at GrandVision's discretion.

GrandVision is in the midst of being acquired by EssilorLuxottica in a deal originally valued at €7.1billion, as VMAIL reported in July 2019. Separately, GrandVision last week noted that due to the international spread of the coronavirus approximately 60 percent of its stores were closed in April and 40 percent were partially open but impacted by varying degrees. This resulted in “a negative revenue impact” of more than 80 percent compared to April 2019, the retailer noted, as VMAIL reported.

GrandVision is the parent company of For Eyes, which has about 120 office locations in the U.S. market.

On Monday, GrandVision noted that, as a result of the active dialogue with its relationship banks, it has reached an agreement to amend the RCF, obtaining relief from the financial covenant tests in 2020.

The next financial covenant test will be performed on amended terms at the end of the first quarter of 2021, with an additional test on amended terms at the end of each quarter in 2021. The new covenants provide the banking group with sufficient comfort while at the same time giving GrandVision operational and financial flexibility in case of unexpected COVID-19 setbacks, the announcement noted.

The retailer also noted that it is “pleased with the pro-active support it has received from its banking group.”

As disclosed in its business update of June 15, GrandVision has a net debt position of €842 million as of May 31, 2020, as VMAIL reported.