Shearman & Sterling advised LBO France Gestion, acting for the Mid-Cap funds it manages, on the implementation of an Impact debt for Moustache Bikes, the leader in premium electric assisted bicycles (EAB) in France, a first for the management company's Mid Cap team.
Moustache Bikes, alongside LBO France, has decided to adapt its financing structure and put in place an additional senior debt tranche of €41.5 million, while increasing the size of its revolving credit line. This additional debt was subscribed by impact and private debt funds (Eiffel, Amundi, Scor, Schelcher), as well as by the company's historical banks (Palatine, Banque Populaire, Crédit Lyonnais, CIC and Crédit Agricole).
This is the first impact debt that LBO France has put in place for one of its Mid Cap Private Equity investments. It had already done so in 2018, for its real estate business, on the occasion of the acquisition of the Network I building in Bagneux (92), France, with financing certified as "Green loan" by the Climate Bond Initiative. The purpose of this impact debt is to combine traditional financial criteria with a selection of ESG (Environment, Social and Governance) objectives which, if met, will enable the company to reduce the cost of the debt. Because of its location in the Vosges (France) and its sustainable DNA, Moustache Bikes has chosen two ambitious criteria: the number of annual recruitments and the training rate of its teams.
Created in 2011, Moustache Bikes quickly became the leader in premium electric assisted bikes (EAB) in France. The company, which now employs more than 140 people, has doubled its revenues over the last two years to reach 100 million euros in 2020. This development coincides with the sale of its bicycles in France and abroad: 50,000 units sold in 2020, a trend supported by the development of soft mobility, the use of EABs for leisure but also for short business trips, a use accelerated by the health crisis.