Fashion house ESCADA H1 revenues up 2.2%

28 Jun '05

9 min read

In the second quarter ESCADA completed a successful bond issue for a par value of EUR 200 million, which was placed with both domestic and foreign institutional investors. The bond matures on April 1, 2012, and carries a 7.5 percent p.a. interest coupon. The proceeds are being used to pay back outstanding bank debt and improve the Group's capital structure for the long term.

Additionally, in March 2005 ESCADA AG agreed with a group of banks on a syndicated loan of EUR 90 million, with a term to December 2008. This credit line will give the Company additional financial flexibility to support the growth it plans for the coming years. With these capital measures ESCADA Group has a solid financing base for the long term.

Bonds accounted for EUR 194.8 million in the consolidated balance sheet as of April 30, 2005 (October 31, 2004: EUR 2.3 million). The figure includes the interestbearing EUR 200.0 million bond issue and the non-interest-bearing EUR 2.3 million convertible bond issue, netted against the issue expenses of EUR 7.5 million for the interest-bearing bond and the syndicated loan. Refinancing by the bond issue reduced long-term bank debt from EUR 202.4 million to EUR 6.5 million.

Short-term provisions, at EUR 23.8 million, were EUR 15.3 million below the figure from October 31, 2004. The change resulted from a utilization of provisions for creditors, for personnel, and for last year's restructuring measures.

The ESCADA Grou004. The change resulted from a utilization of provisions for creditors, for personnel, and for last year's restructuring measures.

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