NEW STADIUM FINANCING

NEW STADIUM FINANCING

Credit agreements and bond indentures signed

Lyon, 27 July 2013

 

Foncière du Montout, a wholly-owned subsidiary of OL Groupe, has signed credit agreements with a group of banks and bond indentures with the Vinci group and the Caisse des Dépôts et Consignations (CDC). These agreements form part of the financing for the new stadium project.

The overall financing structure, to be borne by Foncière du Montout, will be as follows: an equity investment of around €135 million, a bond issue of €112 million, bank borrowings and leases totalling €144.5 million and guaranteed revenue during the construction phase of around €13.5 million, for a total of approximately €405 million.

Eleven banks are participating in the credit agreements, which represent facilities totalling €136.5 million. The maturity of the principal bank credit facility is seven years.

In addition, Foncière du Montout has signed a leasing contract for a total of €8 million with France Telecom Lease (Orange Business Services), relating principally to the IT systems of the new stadium. These systems will be developed by Orange, in collaboration with Cisco, and will make the stadium among the most modern and connected, with interactive communication and optimised business opportunities. Alongside this contract, a €10 million line of credit will be in place during the construction period.

OL Groupe has also signed agreements for bond financing totalling €112 million with the Vinci group for €80 million and with CDC for €32 million.

The signature of these contracts constitutes a decisive step in the financing of the new stadium project.

The last part of the financing plan is set to be implemented in the next few days, when OL Groupe goes to the market with an €80 million bond issue giving access to the capital of the company. The Group has made the filings with the Autorité des Marchés Financiers that are necessary to obtain approval prior to launching the transaction. The principal shareholders of OL Groupe will provide an underwriting guarantee for the issuance of the bonds. These new funds and the shareholder loans already extended by OL Groupe to Foncière du Montout will finalise the €135 million equity portion of that subsidiary's financing, thereby completing the financing for the project.

Construction of the new stadium, which has been entrusted to Vinci Construction France, can now begin during the summer of 2013 with the launch of the service order as soon as the market transaction described above is underway. The new stadium should enter service during the 2015/16 season, enabling the Lyon region to be one of the hosts of the Euro 2016 football competition. Lyon is a candidate for the opening match and one of the semi-finals.

A complement to sporting performance and to the Lyon region

The new stadium, designed by the architectural firm Populous, world-renowned in the field, will be a unique, modern, dynamic venue.

The complex will be open 365 days a year and will accommodate up to 60,000 people (58,000 seats and 2,000 people working on matchdays).

The new stadium site will be dedicated to major entertainment events and serve as a hub of activity open to all. In future, it is also to include two hotels, office buildings, a sports medicine centre and a leisure & entertainment complex open to the general public and corporate users.

The new stadium project as a whole should enable OL Groupe to continue its business development, as it will significantly increase ticketing revenue and generate new sources of revenue. Naming the stadium – associating the name of a commercial company with the sports facility – should also ensure significant and regular revenue for the Group.

Exemplary in terms of ecology and corporate citizenship

The new stadium is an ecologically-responsible project satisfying numerous requirements imposed by the surrounding ecosystem: saving energy, managing water and waste, reducing noise and congestion, and helping disadvantaged segments of the population find employment.

The new stadium should directly create 1,500 jobs during the construction phase, then 1,000 permanent jobs on the site (offices, leisure & entertainment centre, hotels, etc.) during the operating phase. In addition, 800-1,000 stewards and an equal number of temporary service personnel (hostesses, waiters, security personnel, etc.) will be recruited to work on event evenings.

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