Europcar secures new funding to support phased restart post-lockdown
Europcar Mobility Group has put new financing measures in place as it prepares for a phased restart of operations.
The rental and mobility specialist said the new funding would enable it to deal with the “significant business impacts” seen from lockdowns and travel restrictions everywhere it operates while also allowing to progressively resume its activities post-crisis.
The €307m (£268m) of new measures includes a €220m (£192.0m) new term loan, 90% guaranteed by the French State, as well as €67m (£58.5m) new financing facilities for the group’s Spanish activities, 70% guaranteed by the Spanish State and expected to fund both fleet and corporate needs. The new package also puts into place a €20m (£17.5m) Incremental RCF, provided by French banks and guaranteed by Eurazeo through a risk sub-participation.
The group is also in negotiation on potential state guarantee loans in other markets.
Chairwoman Caroline Parot said: “These new financing lines will allow us to secure and progressively resume our activities once local economies restart and begin to recover. Our group is actively preparing for this restart, taking into account the new standards and customer expectations that will most likely stem from the crisis.
“Over the coming months, given the uncertainties remaining ahead of us, we will actively continue our efforts to streamline our cost base and adapt our capital and debt structure to the evolutions of the business environment, with agility and flexibility.”
Parot added: “We are ready to serve our customers and to help communities and businesses move safely in tomorrow’s world, building on our expertise, leadership and the extraordinary dedication of our employees, and relying on our purpose: offering attractive alternative solutions to vehicle ownership, in a responsible and sustainable way.”