Grupo Dia refinances its debt with an agreement for €885 million that provides the company with the optimal financial structure to accelerate its future growth

December 11th, 2024, Las Rozas de Madrid. Grupo Dia, a leader in proximity food distribution, has signed a refinancing agreement for an amount of 885 million euros aimed at strengthening its capital structure and accelerating its growth plan.

This milestone has been reached one year before the maturity date of the current financing terms. This agreement proves the confidence of its financial community in the Group’s results and strategy, focused on consolidating and expanding its leadership as a reference store in proximity and the online channel.

The funds received in this transaction will be used to (a) fully repay the current financing consisting of (i) the financial debt under the syndicated financing contracts originally entered into on December 31, 2018, (ii) the debt under the bonds issued by the Company, and (iii) the bilateral financing facility; (b) cover the costs associated with this refinancing; and (c) support the company’s growth plan and its working capital needs.

In the words of Martín Tolcachir, Global CEO of Grupo Dia: “This refinancing agreement demonstrates the confidence of the financial community in the company and the success of its business transformation. We are moving forward with a firm step. With this transaction, we have the foundation to support our growth plans for the coming years. The improvement in performance has been possible thanks to the excellent work of our team and our franchisee network. I am deeply excited that the company is entering a new phase of accelerated growth.”

With this refinancing agreement, Dia Group strengthens its financial structure and obtains favourable financing conditions regarding terms and document flexibility. The maturity of the company’s debt is extended to a maximum of 5 years and increases its liquidity level. The company’s solid financial performance has allowed it to obtain financing conditions that allow the company to support the growth plan for 2025-29 that will be presented to the market during the first quarter of next year. An Investor’s Day will be held to present Grupo Dia’s long term plans to communicate Dia’s performance and plans with the investor community.

Reverse Split Announcement

In order to promote the liquidity of Dia’s shares and their long-term performance, the Board of Directors of Grupo Dia has agreed to implement a share grouping operation (Reverse Split), applying an exchange ratio of one thousand (1,000) pre-existing shares of the Company for one new share, raising the nominal unit value of the shares from 0.01 euros to 10.00 euros. With this Reverse Split, it is possible to place the share price of Dia at a value that is in line with comparable listed companies in Spain and abroad, in addition to favouring the transfer of the improvement in financial and operational results to the value of the share.

Guillaume Gras, CFO of Grupo Dia, indicates about this decision that “carrying out a Reverse Split is an important step to improve the perception of value with the aim of reaching a wider universe of investors. Grupo Dia has had two and a half consecutive years of growth in like-for-like sales and an increase in market share to comparable area in Spain. We want the Stock Price to reflect this excellent performance. It is a very important measure for our shareholders, and we hope to have their approval, as it will lead us to a new stage of growth under normalized conditions, thanks also to the agreed refinancing, a symbol of the confidence of the banks and the market in the company.”

The closing of the refinancing agreement is subject to the fulfilment, no later than 30 of December 2024, of certain conditions precedent customary in this type of transaction, including the corresponding approval by the General Shareholders’ Meeting. To this end, the Board of Directors of Grupo Dia has agreed to hold it, and the details will be announced shortly through the publication of the corresponding call announcement.

In the refinancing and Reverse Split process, the company has received independent financial advice of PJT Partners. Société Générale has provided advice on the Reverse Split process. Legal advice has been provided by Akin Gump and Pérez-Llorca.