Birkenstock prepays $450 million term loan B, €100 million vendor loan

By Marisa Wong

Los Angeles, Nov. 2 – Birkenstock Holding plc announced it repaid existing debt using proceeds from its initial public offering, together with cash on hand, according to a press release.

The company announced the early repayment of $450 million on its dollar-denominated term loan B and €100 million on its euro-denominated vendor loan.

Birkenstock made the early partial repayment of the term loan B on Nov. 2, leaving an outstanding balance of $331 million. The paydown of the vendor loan was made on Oct. 16, leaving an outstanding balance of about €200 million.

Both loans had been issued to finance the acquisition of Birkenstock by L Catterton in April 2021.

The company noted that its €200 million ABL revolving credit facility remains fully undrawn.

As a result of the prepayments, Birkenstock has reduced its total debt to about €1.314 billion from about €1.840 billion.

The company said it plans to continue its deleveraging process and aims to achieve a leverage ratio of below 2x within the next 18 months. Long-term, the company expects to achieve a leverage ratio of below 1x.

Birkenstock is a shoe manufacturer based in Germany; the parent company has a registered office in London.

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