finance news

Europcar Mobility Group to receive €307m financial assistance

Europcar Mobility Group to receive €307m financial assistance
Europcar Mobility Group to receive €307m financial assistance
  • Mired by the likely fallout of COVID-19 pandemic, the company is eyeing to keep up with the projected fleet and corporate financing requirements to smoothly restart operations

Europcar Mobility Group is reported to have announced the completion of a financial facility scheme to secure its liquidity to surmount the COVID-19 outbreak. Sources cite that this was part of the its endeavor to meet the cash preservation and cost-saving plan published in Q1 2020.

According to reports, €220 million new term loan has been inked with the Group’s main French and international banks; 90% is guaranteed from the French State through Bpifrance. It is believed that the financial facility would have 1 year initial maturity, with up to 5-year extension option concluded by Europcar. That said, this would depend upon customary mandatory provisions.

The company, however, has the caveat for the €220m term loan stating there would be no dividend payments in 2020 and 2021 and there should be 3 times net corporate leverage thereafter.

Meanwhile, 70% of the financial assistance of €67m would be provided by the Spanish State. The new facility is said to be for the Group’s Spanish subsidiaries, inked over the previous 2 weeks with BBVA and Bankia and having three-year maturity and proceeds to underpin both corporate and fleet needs.

The remaining €20 million incremental RCF would be under the aegis of Eurazeo via a risk sub-participation.

The much-needed financial facilities are expected to help Europcar Mobility Group to swiftly resume its operation and sustain and thrive in the business environment mired by the COVID-19 outbreak.

Caroline Parot, Chairwoman of Europcar Mobility Group Management Board, expressed her reverence to Bruno Le Maire, the Minister; Agnes Pannier-Runacher, the Secretary of State; the French State and banks for standing like a rock pillar and leveraging a “constructive dialogue” at the early stage of the pandemic.

Extending her gratitude, Caroline was quoted to have thought highly of Eurazeo for its renewed support. The Chairwoman was also full praise for all the positive interactions and support the County Managing Directors received from banking groups and their respective states across Europe.

Source credit:

About the author

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.