Commentary & Deal Flow

Douglas/Kirk Beauty EUR1.63bn (up from EUR1.3bn) 144A/Reg S notes 2-part. Via GS/DB/UniCredit jt glocos/BNP/UBS jt books. No reg rights. List ISE. NY law.

- Douglas GMBH EUR1.33bn (up from EUR1bn) sr sec notes due 2026 (5y). NC2 (MWC B+50bp) (50%,25%,par). Equity claw: 2y 40%. Special call: 10% per year the first 2 years at 103. B3/B-/B (stable/negative/stable). IPT: 5.50% at par.

- Kirk Beauty SUN GmbH (holdco) EUR300m sr PIK notes due 2026 (5.5y). NC2.5 MWC B+50bp) (50%,25%,par). Equity claw: 2y 40%. Caa2/CCC/CCC (stable/negative/stable). IPT: 9.00% at par.

EUR330m was moved from the term loan to the sr sec notes. Did investor call at 2pm UKT 03/18. Small group meeting 03/19-24. UOP: along with a new credit facility for Parfurmerie Douglas International GmbH, consisting of EUR750m (down from EUR1.08bn) sr sec term loan B and EUR170m revolver (lender call 03/16 via GS/DB/Unicredit/UBS joint books), to fund a recap, including redeeming Douglas GmbH EUR300m 6.25% sr sec notes due 07/15/22 (callable at 100) and Kirk Beauty One GmbH EUR335m 8.75% sr notes due 07/15/23 (callable at 100), repay its existing sr sec credit facilities (EUR1.67bn term loan B nd EUR200m drawn on its revolver), and EUR99m cash on the B/S. The equity sponsor CVC is also contributing EUR220m in equity. Biz: European specialist retailer of beauty care and lifestyle products in online shops, the beauty marketplace and 2,400 stores. HQ: Dusseldorf, Germany.