Global Blue Completes Strategic Equity Investment and Entry Into New Credit Agreement
November 29 2023 - 6:15AM
Business Wire
Global Blue Group Holding AG (NYSE: GB and GB.WS), the leading
strategic technology and payments partner powering retailers’
improved performance and enhancing shoppers’ experience, is pleased
to announce the completion of the strategic equity investment with
Tencent, a world leading internet and technology company, and the
signing of a new credit agreement which is anticipated to close in
early December.
Completion of Strategic Equity Investment Further to the
share purchase and investment agreement dated November 16, 2023, on
November 28, 2023, Global Blue completed the sale to Tencent of
approximately 9.1 million newly issued common shares for a total
consideration of $50 million. Global Blue intends to use the
proceeds of the sale to reduce its debt balance, in pursuit of its
long-term target of net leverage of less than 2.5x Net Debt /
Adjusted EBITDA.
In addition, on November 28, 2023, affiliates of Silver Lake and
Partners Group and certain members of the board and management
completed the previously announced sale to Tencent of approximately
9.1 million common shares for a total consideration of $50
million.
New Credit Agreement On November 24, 2023, to further
strengthen its balance sheet, Global Blue entered into a new credit
agreement consisting of a senior secured term loan (“term loan”) of
€610.0 million and a senior secured revolving credit facility
(“RCF”) of €97.5 million.
The term loan bears interest at a rate of EURIBOR and an
applicable margin of up to 5.00% and will mature in December 2030.
The RCF bears interest at a rate of EURIBOR and an applicable
margin of up to 4.50% and will mature in June 2030.
ABOUT GLOBAL BLUE
Global Blue pioneered the concept of Tax Free Shopping 40 years
ago. Through continuous innovation, we have become the leading
strategic technology and payments partner, empowering retailers to
improve their performance and shoppers to enhance their
experience.
Global Blue offers innovative solutions in three different
fields:
- Tax Free Shopping: Helping retailers at over 300,000
points of sale to efficiently manage 35 million Tax Free Shopping
transactions a year, thanks to its fully integrated in-house
technology platform. Meanwhile, its industry-leading digital Tax
Free shopper solutions create a better, more seamless customer
experience
- Payments services: Providing a full suite of foreign
exchange and Payments technology solutions that allow acquirers,
hotels and retailers to offer value-added services and improve the
customer experience during 31 million payment transactions a year
at 130,000 points of interaction
- Complementary RetailTech: Offering new technology
solutions to retailers, including digital receipts and eCommerce
returns, that can be easily integrated with their core systems and
allow them to optimize and digitalize their processes throughout
the omni-channel customer journey, both in-store and online
In addition, Global Blue’s data and advisory services
offer a strategic advisory to help retailers identify opportunities
for growth, while its shopper experience and engagement
solutions provide data-driven solutions to increase
footfall, convert footfall to revenue and enhance
performance.
Pre-pandemic figures FY 19/20.
ABOUT TENCENT
Tencent uses technology to enrich the lives of Internet users.
Tencent’s communication and social services, Weixin and QQ, connect
users with each other and with digital content and services, both
online and offline, making their lives more convenient. Tencent’s
targeted advertising service helps advertisers reach out to
hundreds of millions of consumers in China. Tencent’s FinTech and
business services support Tencent’s partners’ business growth and
assist their digital upgrade.
Tencent invests heavily in talent and technological innovation,
actively promoting the development of the Internet industry.
Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent
(00700.HK) are listed on the Main Board of the Stock Exchange of
Hong Kong.
Source: Global Blue
FORWARD-LOOKING STATEMENTS
Some of the statements in this press release constitute
forward-looking statements that do not directly or exclusively
relate to historical facts. You should not place undue reliance on
such statements because they are subject to numerous uncertainties
and factors relating to Global Blue’s operations and business
environment, all of which are difficult to predict and many of
which are beyond Global Blue’s control. Forward-looking statements
include information concerning Global Blue’s possible or assumed
future results of operations, including descriptions of Global
Blue’s business strategy and target financial results, as well as
the expected closing of the refinancing transaction. These
statements are often, but not always, made through the use of words
or phrases such as “believe,” “anticipate,” “could,” “may,”
“would,” “should,” “intend,” “plan,” “potential,” “predict,”
“will,” “expect,” “estimate,” “project,” “positioned,” “strategy,”
“outlook” and similar expressions. All such forward-looking
statements involve estimates and assumptions that are subject to
risks, uncertainties and other factors that could cause actual
results to differ materially from the results expressed in the
statements. Among the key factors that could cause actual results
to differ materially from those projected in the forward-looking
statements are those described in Global Blue’s Annual Report on
Form 20-F for the fiscal year ended March 31, 2023 and those
described from time to time in Global Blue’s other reports to be
filed with the Securities and Exchange Commission.
These risks could cause actual results to differ materially from
those implied by forward-looking statements in this press release.
Global Blue may not be able to complete the proposed transaction on
the contemplated terms or other acceptable terms or at all because
of a number of factors, including the occurrence of any event,
change or other circumstances that could give rise to the
termination of the definitive agreement governing the proposed
transaction.
You are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date hereof.
New risks and uncertainties come up from time to time, and it is
impossible for Global Blue to predict these events or how they may
affect Global Blue. Global Blue does not undertake any obligation
to update or revise any forward-looking statements after the date
of this press release, whether as a result of new information,
future events or otherwise, except as required by law. In light of
these risks and uncertainties, you should keep in mind that any
event described in a forward-looking statement made in this press
release or elsewhere might not occur.
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INVESTOR RELATIONS CONTACTS
Frances Gibbons - Head of Investor Relations Mob: +44 (0)7815
034 212 Mail: fgibbons@globalblue.com
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