MILAN-Safilo Group SpA said Thursday its lending banks had agreed to postpone to the end of the year a loan payment due June 30 and waiver the respective debt covenants, while sale talks continue with potential suitors.”The final details and conditions are currently being negotiated by the banks and the company,” Safilo stated, referring to the loan agreement. It gave no other details.
The Italian eyewear firm’s majority shareholder, Only 3T SpA, is in talks with at least two private equity funds about selling a stake to ease Safilo’s debts amid declining demand. The interested parties have not been named although they are thought to include Bain Capital and PAI Partners. Neither fund returned calls seeking comment.
You May Also Like
Rival manufacturer Marcolin SpA has also been linked to a possible deal, although a company spokeswoman declined to comment. However the final deal is structured and with whomever, Safilo chief executive officer Roberto Vedovotto said in April he hoped to secure the company’s future before the summer.
As of March 31, Safilo had net debts of 617.7 million euros, or $870 million at current exchange, and is rated Ojunk by credit ratings agencies Standard & Poor¹s, Moody¹s and Fitch. The Tabacchi family controls 39.9 percent of Safilo via Only 3T.