Clifford Chance steers Pepe Jeans´ financial restructuring

Clifford Chance has advised Pepe Jeans on the multijurisdictional restructuring of the group’s financial indebtedness

Pepe Jeans has carried out the restructuring of the group’s financial indebtedness, including homologation proceeding, re-capitalisation, corporate restructuring and ICO scheme new money.

The extra funding comes as a means to survive the pandemic crisis. The company has redefined the conditions of its syndicated loan and extended the financing.

The companies involved in the refinancing agreement are Pepe Jeans Group, S.L.U., Pepe Jeans, S.L.U., Pepe Jeans Europe B.V., Hackett Lim Spain, S.L. and Ck Apparel Iberia, while the lenders are Pjl Investments BV, BBVA, S.A., Banco Santander, S.A. Caixabank, S.A., Banca March, S.A., Banco Sabadell, S.A. Abanca Corporación Bancaria, S.A., Bankinter, S.A., Morabanc Grup, S.A., Citibank Europe Plc, sucursal en España, Banco Cooperativo Español, S.A., Inmomutua Madrileño, S.L. and Institut Catalá de Finances.

According to fashion media, the group has refinanced its €230 million syndicated loan, extending the financing by €46.6 million, a loan that was already refinanced in 2019.

The same media informs that Pepe Jeans’ shareholders have reinforced the company with a capital increase of €30 million subscribed by M1, LCatterton and the group’s management team in order to reinforce the financial capacity and provide the necessary solvency to face the transformation plans in this new stage.

The Clifford Chance team advising Pepe Jeans comprised Banking and Finance partner Epifanio Pérez (pictured left), supported by senior associate Felipe Font and lawyers Marta Martínez and Alejandro Cubillo, together with Insolvency partner Iñigo Villoria (pictured right), supported by senior associate Alexandra Borrallo.

On the other hand, A&O Madrid team has advised the financial entities in the debt restructuring of Pepe Jeans London. The process has involved the corporate re-capitalisation and Restructuring including ICO Scheme new money, all through a homologation proceeding. The team was led by partners Jimena Urretavizcaya and Javier Castresana along with associate Sofía Sánchez-Calero.

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