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Debt Financing

Financial key figures

Data are as at June 30, 2019

4,310Gross debt excluding IFRS 16 (€m)

2,772Net debt excluding IFRS 16 (€m)

6,266Gross debt including IFRS 16 (€m)

4,728Net debt including IFRS 16 (€m)

A2Stable / Moody's long term rating

AStable / S&P long term rating


EssilorLuxottica aims at maintaining continuous liquidity in order to ensure its independence and growth through significant and steady cash flows. The group also observes some liquidity principles aiming at securing funding availability at all times at the lowest possible costs. This principle relies upon the diversification of funding sources, the use of medium and long-term financings, the distribution of maturities over time, the recourse to credit facilities and the use of liquidity reserves.

Funding principles

  • Liquidity management is centralized at the level of the group parent company.
  • Source of funding diversification is the cornerstone of liquidity policy.

Rating

Maintaining a strong credit rating is the best way to provide an access to a wide range of funding sources. EssilorLuxottica credit ratings are based on the assessment of its credit profile and its ability to repay its debt by Moody’s and Standard & Poor’s. These ratings are purely indicative and may be modified at any time.

  Long term Short term Outlook Last confirmation
Moody's A2 Prime-1 Stable August 1, 2019
Standard & Poor's A A-1 Stable July 31, 2019
 

 

Data are as at June 30, 2019 - except graphs on Net debt (currencies) and Net debt (interest rates) which are as at December 31, 2018 and reviewed annually

The group diversifies its financings across:

  • instruments: bond, private placement, term loan, commercial paper, leasing;
  • geographies: Europe, US, Asia, local markets;
  • tenors: short-term, long-term;
  • currencies;
  • interest rates: floating, fixed, capped; and
  • drawn/undrawn instruments.

Gross debt structure

Long term funding

Providing long-term funding helps securing the group’s ability to carry-out its strategy on a long-term horizon irrespective of potential market disruptions.

Short term funding

EssilorLuxottica entertains US commercial paper (USCP) and Negotiable EUropean commercial paper (NEU CP) programmes. They are a flexible and cost-effective tool to raise monies with very short notice, which is well-suited to working capital funding needs.

Net debt (currencies)

after FX swaps, in millions of €

Net debt

Net debt (interest rates)

In millions of €

Net debt (interest rates)

Data are as at June 30, 2019

While the group mainly finances itself through financial markets, it also secures its permanent access to liquidity through long-term committed credit facilities (syndicated or bilateral lines) concluded with a pool of close banks. Such credit facilities are a funding buffer and a back-up for the group’s short-term commercial paper programmes.

As of June 30, 2019,

  • all bank committed credit facilities were undrawn. Their aggregate amount significantly exceeded the upcoming debt maturities due in 2019/2020;
  • available cash was €1,538 (€m).

As of June 30, 2019 the average maturity of the gross debt was 2 years.

Debt Maturity Profile

In millions of €

1. Long term financing

EMTN: European Medium Term Notes

Issuer Information

EssilorLuxottica

Amount:€12bn

Date of renewal: May 23, 2019

Maturity: Yearly renewal

 

SECOND PROSPECTUS SUPPLEMENT DATED NOVEMBER 13, 2019 (PDF)

Prospectus Supplement dated November 6, 2019 (PDF)

Base Prospectus dated May 23, 2019 (PDF)

 

Archives:

Base Prospectus dated December 13, 2018 (PDF)

Base Prospectus dated April 20, 2018 (PDF)

Prospectus Supplement dated June 16, 2017 (PDF)

Base Prospectus dated May 9, 2017 (PDF)

Base Prospectus dated March 24, 2016 (PDF)

Prospectus Supplement dated July 30, 2015 (PDF)

Base Prospectus dated December 23, 2014 (PDF)

Prospectus Supplement dated April 1, 2014 (PDF)

Prospectus Supplement dated March 26, 2014 (PDF)

Base Prospectus dated December 12, 2013 (PDF)

Luxottica Group S.p.A.

Amount: €2bn

Date of last renewal: May 9, 2014

 

Base prospectus dated May 9, 2014 (PDF)

 

Archives:

Prospectus Supplement dated January 28, 2014 (PDF)

Prospectus Supplement dated August 5, 2013 (PDF)

Base Prospectus dated May 10, 2013 (PDF)

Outstanding bonds

Issuer ISIN code Instrument Issue date Maturity date Currency Issued amount Coupon
EssilorLuxottica FR0011842939 Eurobond April 9, 2014 April 9, 2021 500m 1.75%
EssilorLuxottica FR0011842913 Eurobond April 9, 2014 April 9, 2024 300m 2.375%
EssilorLuxottica FR0013266236 Eurodollar June 30, 2017 June 30, 2022 $ 300m 2.5%
EssilorLuxottica XS1030851791 Eurobond* February 10, 2014 February 10, 2024 500m 2.625%
EssilorLuxottica FR0013463643 Eurobond November 27, 2019 May 27, 2023 1 billion 0 %
EssilorLuxottica FR0013463650 Eurobond November 27, 2019 May 27, 2025 1.5 billion 0.125 %
EssilorLuxottica FR0013463668 Eurobond November 27, 2019 November 27, 2027 1.5 billion 0.375 %
EssilorLuxottica FR0013463676 Eurobond November 27, 2019 November 27, 2031 1 billion 0.750 %

*For further information, please visit www.luxottica.com

US Private Placements

Issuer Issue date Outstanding Maturity dates Currency Issued amount Outstanding amount as of June 30, 2019
EssilorLuxottica 2013 2019 / 2023 $ 500m
(7 tranches)
300m
EssilorLuxottica 2017 2022 / 2027 $ 300m
(2 tranches)
300m

Bank credit facilities

As at June 30, 2019, EssilorLuxottica’s committed bank credit facilities amount to €2.3 billion equivalent, including:

(i) a €900 million euros five-year syndicated credit facility entered into in 2015, encompassing two one-year extension options, reaching maturity in December 2022 after such options are exercised; and

(ii) several bilateral credit facilities;

All are undrawn.

Bank loans

As at June 30, 2019, bank loans amounted to €500 million:

Borrower Start date Maturity Currency Amount Rate
Luxottica Group S.p.A. March 10, 2017 March 10, 2022 250m Euribor 3m + 0.70%
Luxottica Group S.p.A. March 10, 2017 March 10, 2022 250m Euribor 3m + 0.62%

2. Short term financing

Issuer Program Signing date Maturity date Currency Programme
EssilorLuxottica US Commercial Paper October 1, 2018 / $ 2bn
EssilorLuxottica Negotiable EUropean Commercial Paper (NEU CP) June 25, 2019 Yearly renewal 1.5bn