BC Partners will hand over control of Pronovias Group to lenders led by Bain Capital, who will swap part of their debt for equity in an agreement aimed at hastening the Spanish bridewear designer’s rebound from the pandemic.
The creditor group, which also include MV Credit, will provide “significant new funding” for Pronovias, according to a statement released. Debt will be reduced “materially” and the remaining maturities will be extended to grant the company more time for a turnaround.
Following the transaction, the company will be left with €125 million ($133 million) of new financing injected by lenders, according to people familiar with the matter, who asked not to be named because it’s private.
Having made several equity injections into Pronovias in recent years, BC Partners has been discussing liquidity options for the business with lenders for some time. Bain had provided €15 million at a discount to face value in a new debt facility in October, Bloomberg reported last week.
Pronovias was hit hard in the last two years when major events were canceled because of Covid-19 lock-downs or were allowed to go on with severe restrictions. With the world now re-emerging from the pandemic, Pronovias is forecasting year-on-year revenue growth of 43 percent in 2022, according to the statement.
The closing of the transaction is targeted by early 2023, subject to regulatory approvals.
