US' Elis signs €900 million syndicated Revolving Credit Facility

The new RCF, which has a term of five years (November 2026) plus two one-year extension options (5+1+1 years), replaces the existing €500 million and €400 million revolving credit facilities signed in January and November 2017. The refinancing will allow to further secure and extend the group’s liquidity profile, and to reduce the annual financial charge by €1.5 million thanks to more competitive pricing on commitment fees compared to the existing facilities, Elis said in a press release.

Considering the high priority given by Elis to the social, societal, and environmental issues, integrating CSR as a core component of the group financing policy, and within this new RCF, was the natural next step for the group. The new facility includes an adjustment mechanism that links its cost to the achievement of annual targets for two selected sustainability KPIs, at the forefront of the group ESG strategy.

In terms of water consumption, the company can achieve a 30 per cent reduction per kg of linen delivered over the period 2018-2030 in the European laundries. The company can work on gender diversity, by increasing the proportion of women in executive and management positions to 42 per cent by 2030 (34 per cent in 2020), according to Elis.

The sustainability linked RCF has been structured by BNP Paribas as sustainability coordinator, Credit Agricole CIB and HSBC Continental Europe as documentation agent and coordinators. Elis offers its clients products that are maintained, repaired, reused, and reemployed to optimise their usage and lifespan. The group therefore selects its textile products based on durability criteria, to ensure frequent washing and also operates repair workshops. Elis is convinced that the circular economy model, which notably aims at reducing consumption of natural resources by optimising the lifespan of products, is a sustainable solution to address today’s environmental challenges.

“By linking this new facility to our sustainability performance on such core environmental and social KPIs, we demonstrate the integrated approach of our business and CSR strategy, which is fully embedded into our operational model and financial policy. This refinancing further strengthens the Group’s already very solid liquidity and credit profile, as underscored by the upgrade from S&P to BB+,” Xavier Martiré, CEO of Elis said in a statement.

ALCHEMPro News Desk (GK)