EDreams ODIGEO announces €425m refinancing bid

EDreams ODIGEO announces €425m refinancing bid

Online travel giant eDreams ODIGEO is seeking a €425 million refinancing.

The European e-commerce business made the disclosure last night just weeks after revealing a 6% year-on-year drop in net profits to €5.7 million for the three months to June 30.

The company, which runs online travel agency brands eDreams, GO Voyages, Opodo, Travellink and metasearch engine Liligo, said it had launched an offering of senior secured notes to the value of €425 million due to expire in 2023.

It added: “eDreams ODIGEO and certain of its subsidiaries will guarantee the notes, and the notes will be secured by certain assets of eDreams ODIGEO.

“The net proceeds of the offering, if completed, along with existing cash on balance sheet, are expected to be used to redeem for cancellation all of the outstanding euro-denominated 8.50% senior secured notes due 2021 issued by eDreams ODIGEO on October 4, 2016, in accordance with the terms of such notes, and to pay commissions, fees and other expenses associated with the offering and the redemption.”

No further details were revealed by the Barcelona-based business, which is listed on the Spanish stock market.

The company claims to have more than 18.5 million customers across 43 markets offering deals from 575 airlines, hotels, cruises, car hire, dynamic packages, holidays and travel insurance.

Chief executive Dana Dunne last month described the first quarter performance to June 30 as being “in line with expectations” with a “clear sign” that a revenue diversification is working.

“As previously guided, we expect these changes to our revenue model to slow down our financial performance in fiscal year 2019, but greatly improve the service provided to our customers, leading to sustainable profit growth,” he said at the time.

The company said then that its guidance for its current financial year was to achieve adjusted earnings (ebitda) of €118 million.

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