Financiere Agache SA, the majority owner of French luxury goods maker Christian Dior SA (CDI), is seeking to refinance a 500 million-euro ($646 million) loan due next year, according to three people with knowledge of the matter.
The Paris-based company has started negotiations with banks to replace its revolving line of credit, which is due to mature in July 2014, said the people, who asked not to be identified because the deal is private. The pricing and maturity of the transaction have not yet been set, they said.
Credit Agricole SA (ACA), Banque Federative du Credit Mutuel SA and Natixis arranged the existing deal in 2010, according to data compiled by Bloomberg. Telephone calls and an e-mail to officials in the company’s Paris office seeking comment on the deal weren’t immediately returned.
Financiere Agache is controlled by France’s richest man Bernard Arnault through his investment firm Groupe Arnault SA, according to its website. The company owns 69 percent of Christian Dior, which in turn has a 41 percent stake in LVMH Moet Hennessy Louis Vuitton SA (MC), the maker of Louis Vuitton handbags and Moet & Chandon champagne.
Arnault is worth $31.6 billion, according to the latest Bloomberg Billionaires Index, making him the world’s 14th richest person.
Christian Dior raised a 635 million-euro credit line earlier this year, boosting the deal from a targeted 500 million euros after lenders offered more funds than sought, Bloomberg data show. The five-year loan pays initial interest at 80 basis points more than the euro interbank offered rate and was arranged by Credit Mutuel, BNP Paribas SA, Credit Agricole, ING Groep NV, Natixis and Societe Generale SA, the data show.
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