Tendam pays off €190 million early, reducing debt costs by 20%
Tendam Group continues to strengthen its financial position. Tendam Brands, the parent company, made the strategic decision to pay off €190 million, thereby reducing its interest costs by 20%, as reported.
The action involves the partial repayment of the €300 million senior secured loan issued at a variable rate in October 2022 and maturing in 2028.
“The repayment and reorganisation of the debt means that the group will reduce its annual interest payments by 20%, giving the company a competitive advantage in accelerating its growth plans,” stated Tendam.
The group implemented this move through two channels: capital from its own treasury and funds from a €180 million green loan tied to sustainability goals secured in July of this year.
“The operation reflects the financial community’s confidence in the company’s quality and performance, demonstrating effective management of financial costs and the commitment of Tendam and its shareholders in improving debt and credit costs,” the fashion company added.
For the fiscal year 2022-2023 (ending on February 28), Tendam Group achieved an 8.8% increase in sales to reach €1.211 billion. Additionally, its recurring EBITDA reached €285 million, a 3% increase from the previous fiscal year, and the gross margin was 61.3%, amounting to €741.9 million, an increase of €51.1 million from the prior year.