Louis Dreyfus owner settles Credit Suisse debts with ADQ deal balance sheet
PARIS (Reuters) – Margarita Louis-Dreyfus, major shareholder in commodities trader Louis Dreyfus Company (LDC), will use a portion of the proceeds from a deal with Abu Dhabi’s ADQ to pay off a $ 1 billion (£ 750.53 million) debt to settle at Credit Suisse, she told Swiss business magazine Bilanz.
LDC announced this month that it has agreed to sell a 45% stake to state investor ADQ for an undisclosed amount, opening up the family company’s capital for the first time in its 169-year history.
LDC said at least $ 800 million of the proceeds will go towards a $ 1 billion loan the group has made to rescue Brazilian sugar company Biosev. It did not refer to a separate $ 1 billion loan raised by Credit Suisse to Margarita Louis-Dreyfus’ Akira family fund.
“Part of this (ADQ) transaction is planned to settle the debt,” she was quoted in an article published on the Bilanz website on Monday with reference to the Credit Suisse loan.
She did not provide any further details in the article.
The LDC press office, contacted by Reuters, said the matter relates to shareholders and is not being administered by LDC.
The Credit Suisse loan was taken out in early 2019 to buy out minority shareholders in the family, increasing Louis-Dreyfus’ stake in LDC’s holding company to around 96%.
The ADQ agreement resulted in LDC receiving its first credit rating from S&P Global and the group issuing a € 600 million ($ 719.4 million) bond.
ADQ, meanwhile, is in talks with banks about a $ 1 billion loan to support the proposed acquisition of the LDC stake, sources told Reuters this month.
($ 1 = 0.8340 euros)
Reporting by Gus Trompiz and Michael Shields; Adaptation by David Goodman