LACROIX secures €77.6M syndicated loan to refinance debt and fund growth
What's the deal? French mid-cap technology and industrial group LACROIX has completed a €77.6M syndicated loan — its first — to refinance existing debt and finance investments tied to its 2027 strategic roadmap.
The financing breaks down into three parts: €44.6M to refinance existing debt with an extended seven-year maturity, a €30M confirmed credit line for capital expenditure and minority acquisitions, and a €3M revolving credit facility with a four-year term.
Seven banks participated in the deal, with LCL acting as coordinator and mandated lead arranger. BNP Paribas, Société Générale, and five other French banking institutions rounded out the syndicate. KPMG Corporate Finance advised LACROIX, while DLA Piper France advised the lenders.
Why now? LACROIX, which generated €445M in revenue in 2025, is executing against a 2027 strategic roadmap. The loan extends the average maturity of its debt beyond 4.5 years, giving the company a longer runway to invest in its two core businesses: electronics manufacturing and infrastructure management solutions.
The deal also simplifies the group's financing structure. Rather than juggling multiple bilateral arrangements, a single syndicated framework gives LACROIX what it calls "enhanced flexibility and responsiveness" to act on future opportunities.
What could go wrong? The loan includes a financial covenant capping the net leverage ratio at 3.0x, plus a dividend limitation aligned with the group's historical payout practices. If LACROIX's leverage rises — whether from a revenue downturn or aggressive spending — that covenant could constrain its options.
The interest rate spread is also adjustable based on the leverage ratio, meaning borrowing costs could climb if the balance sheet deteriorates.
The signal: This is a textbook move for a European mid-cap looking to professionalise its capital structure. Shifting from bilateral bank lines to a syndicated facility signals growing institutional confidence — and LACROIX's ambition to compete more aggressively in a sector where it already ranks among Europe's top 10 electronic manufacturing services providers.
The deal also reflects a broader trend of family-owned, publicly listed European industrials tapping structured debt markets to fund digital and IoT-driven growth strategies without diluting equity.
Read more: globenewswire.com
