French retailer Casino has initiated a new round of debt restructuring discussions, less than two years after its previous overhaul, as it extends its "Renouveau years 2030” recovery plan.
The group, controlled by Daniel Křetínský’s France Retail Holdings (FRH), has entered negotiations with lenders of more than €1.4bn ($1.61bn) of Term Loan B facilities maturing in March 2027.
FRH is prepared to underwrite a €300m capital increase, subject to reaching acceptable terms with creditors.
Casino is proposing to cut the nominal value of the Term Loan B from €1.4bn to €800m, reduce the interest rate from 9% to 6%, and extend the maturity of all group financing by five years from the closing date of the transaction.
The reinstated €800m loan would carry 6% payment-in-kind (PIK) interest for the first two years, then 6% cash interest for years three to five.
The contemplated restructuring is intended to lower its net leverage towards levels seen across the sector, reinforce liquidity and support execution of the Renouveau 2030 roadmap.
Casino is targeting a net leverage ratio below 1.7x by 2029 and has identified €500m in liquidity requirements, which it expects to meet through the planned equity raise, optimisation of operational financing and reduced interest costs.
“Should such a financial adaptation and strengthening operation be completed, it would result in significant dilution for existing shareholders,” Casino’s statement read.
If other investors do not take part in the share issue, FRH’s stake in the group would increase to 68%.
Casino also plans to renegotiate its operational financing, including bank guarantees, aiming for a three-year maturity from closing with two potential extensions.
Under the Renouveau 2030 plan, the group has set targets including €15.8bn in gross merchandise volume (GMV) by 2030, adjusted earnings before interest, taxation, deprecation and amortisation (EBITDA) after lease payments of €644m, cumulative net capital expenditure of €1.7bn between 2025 and 2030, and free cash flow of €286m.
It reaffirmed its 2028 goals of €15bn in GMV, around €500m in adjusted EBITDA and a return to break-even free cash flow in 2026.
Operational priorities include a full refurbishment of the Monoprix chain by 2030, expanding the Franprix Oxygène format to 800 outlets, further developing Naturalia’s La Ferme concept, and introducing new Spar and Casino formats in 300 shops.
The group is also planning more than 210 additional Casino, Vival and Spar stores by 2030, as well as a broader roll-out of the “Cœur de Blé” foodservice offer.
For e-commerce subsidiary Cdiscount, Casino is aiming for a 15% increase in business-to-consumer customers by 2030, driven by stronger brand positioning and expansion of its marketplace.
The company is seeking to conclude negotiations with creditors and complete the financial restructuring by the end of the second quarter of 2026
Casino Group CEO Philippe Palazzi stated: “FRH's support for the operational and financial strategy proposed by the management team is crucial to setting the group on the path to development. I am confident that we are in the right market, at the right time, with the right strategy, and with realistic and ambitious 2030 objectives.”
