Europcar lifts profit goal after bond issue
PARIS May 28 (Reuters) - French car rental business Europcar, which investment group Eurazeo plans to list on the stock exchange next month, raised its full-year profit target as it announced a debt refinancing at better conditions than it had expected.
Europcar, in which Eurazeo holds 87 percent, said it now expects to achieve a net profit of about 125 million euros ($137 million) in 2015 instead of the 120 million previously forecast.
The company said on Thursday it successfully sold 475 million euros of senior notes due in 2022. The amount is equivalent to the capital increase Europcar plans as part of its June initial public offering (IPO).
Europcar said it would use the net bond proceeds, which will be available once the flotation is completed, to redeem in full its existing subordinated notes due in 2018. It also plans to use the capital increase to redeem notes due in 2017.
"Since the conditions of the refinancing transactions ... are better than Europcar's initial expectations, the group upgrades by 5 million euros," Europcar said in a statement referring to its forecast for net profit excluding one-time items.
Debt rating agencies Standard & Poor's and Moody's earlier this week indicated they may upgrade their ratings on Europcar following the completion of the float. ($1 = 0.9137 euros) (Reporting by James Regan; Editing by David Holmes)
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