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Le République

presented by October France

€450,000

6%

60 months

B

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location

Location

Lyon, France

activity

Activity

Restaurants and catering services

Presentation of the company

Created in 1993, Le République is active in the restaurant-brasserie sector. The company, managed by Aurélien Liveneau, has 10 employees and is based in Lyon 2eme. Bought in 2008 by Aurélien Liveneau, Le Republique is hold by the holding company Lou. The group Lou is composed of 10 other restaurants spread out in the city of Lyon and olso owned by Aurélien Liveneau.

The company’s main activity is related to drinks and tapas.

The company works with office workers during the week and touristic affluence during summer.

The restaurant is 5 minutes away from the Bellecourt Square in a trendy area. It has a nice and quiet outside area under the trees.

Le Republique is opened every day from 8 AM to 1 PM and from 11 AM to 12 PM on Sundays. It also makes specific events for football matchs nights. 

Project Description

The company requests a loan of 450 000 € over 60 months with 3 months of deferred repayment to finance The Republique’s renovation work. This project will be realised next month.

This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following 60 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

The amount offered on the platform is limited to 220500€, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 1 671 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

In 2017 the decrease of turnover is driven by renovation works on the Hôtel Dieu (30 metres away) which had an impact on the attendance. The forecast is based on the historical performance of the restaurant taking into account a growth in turnover and profitability driven by an increase in attendance and a move upmarket following renovation works.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,12 and a strong financial structure, with a forecast net debt / ebitda ratio of 0,56 and a net debt / shareholder equity of 168%.

The analysis of the project leads to a credit rating of B and a 6% annual interest rate.

Strong points:

  • Good historical performance based on diversified client base.
  • Correct repayment ability with a forecasted FCCR of 1,12 reinforced by the support of banking pool and shareholders.
  • Group with a strong foothold in Lyon.

Points of caution:

  • Fast growth with high investment.

Warning: As the project presentation indicates, the group uses various sources of financing, including investment vehicles advised by the 123IM group, which Olivier Goy (founder and chairman of the management board of Lendix) created and managed until 2014. Olivier Goy is however no longer operational in 123IM and has no impact on fund management. In addition, we recall that Lendix executives (including Olivier Goy) invest systematically and significantly in all projects presented on Lendix in order to align their interests with those of lenders.

"*The multiple of FCCR at 1,12 means that the company has a safety margin of 12% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (Scores & Decisions, Corporate Banking File). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project."