(Bloomberg) -- OGF SA, a French operator of funeral homes, is planning to refinance its debt with help from owner Ontario Teachers’ Pension Plan Board, which has put a €150 million ($163 million) equity injection on the table to convince investors to stay on board.
OGF wants to extend maturities on €716 million term loans due to mature in December 2025 by three years, and increase the margin by 25 basis points, according to a person familiar with the matter, who asked not to be identified because the discussions are private.
The extra investment from Ontario Teachers’ is intended to sweeten the deal for existing creditors and allow OGF to reduce its debt levels. The company currently has €816 million worth of term loans due in December 2025.
The company has faced pressure from declining mortality rates, as well as tough competition in the funeral services market in France, according to S&P Global Ratings, which cut OGF’s credit score to B- at the end of last year. Bankers at BNP Paribas SA are leading the debt refinancing, and Messier & Associes is working as a financial adviser.
Read: French Funeral Firm Hires BNP for Early Start on Maturing Debt
OGF last refinanced its debt in 2022 with an amend-and-extend deal, which included a partial repayment of the term loans and payment-in-kind debt offered to existing investors and third parties. The PIK debt is still outstanding at over €150 million.
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