Christian Dior Said to Seek $700 Million Credit Line RefinancingStephen Morris
Christian Dior SA, the French luxury goods maker, is seeking to replace a 535 million-euro ($700 million) credit line, according to three people with knowledge of the matter.
The company wants to raise a five-year facility to replace the loan it obtained in 2007, said the people, who asked not to be identified because the deal isn’t public. Dior may increase the size of the transaction after it received more commitments than the 500 million euros it first sought, they said.
Hugues Schmitt, a spokesman for Paris-based Christian Dior, declined to comment on the financing.
BNP Paribas SA, Credit Agricole SA, Credit Mutuel CIC, ING Groep NV, Natixis SA and Societe Generale are arranging the debt, said the people. The lenders may sign the final loan documents this week along with other banks, the people said.
Dior, which owns about 41 percent of LVMH Moet Hennessy Louis Vuitton SA, is offering to pay an initial interest margin of 80 basis points, or 0.8 percentage points, more than the euro interbank offered rate, the people said. Lenders will also receive a commitment fee equivalent to 35 percent of the margin as well as a participation fee.