German perfume retailer plans 2021 debt restructuring

German perfume retailer Douglas is preparing for a financial restructuring in 2021 as the COVID-19 pandemic hits its business and its debt nears maturity, two people familiar with the matter said.

Once the important Christmas season is over, the company will kick off talks with its creditors on options including a refinancing, a deal to amend and extend maturities or a debt-for-equity swap, the sources said.

Douglas’ outstanding loans and bonds mature from February 2022. In total, the company’s net debt stood at $2.5 billion as of June 2020.

“We will therefore begin refinancing on a regular basis in the coming year,” a Douglas spokesman said, declining to comment further.

The company’s owner, private equity firm CVC, is willing to inject additional equity, if needed, to safeguard its investment, the sources said, adding that Lazard is acting as restructuring adviser.

CVC and Lazard declined to comment.

Source: Reuters