Smarty Secures Financing with Czech Banks
Deal News | Feb 24, 2025 | CEE Legal Matters
CMS has played a pivotal role in advising a consortium of Czech banks on a significant financing package for Smarty Brands Group. The financing initiative, which involves Ceska Sporitelna, Ceskoslovenska Obchodni Banka, Komercni Banka, and Raiffeisenbank, aims to refinance existing debt and provide additional funding for Smarty's operational needs and planned investments through 2025. This arrangement consolidates previous bilateral agreements into a single umbrella facility agreement, while certain lenders continue to offer standalone financing, supported by the European Investment Fund. This sophisticated financial engineering, including intercreditor terms, enables the coexistence of additional senior financing options. The CMS advisory team was led by Petra Mysakova, supported by a team including Zuzana Nikodemova, David Bujgl, Matej Eberle, and Michal Vaclavik. However, CMS has declined to disclose further details of the transaction.
Sectors
- Consumer Electronics
- Financial Services
- Legal Services
Geography
- Czech Republic – Both the Smarty Brands Group and the involved banks are based in the Czech Republic.
- European Union – The European Investment Fund, supporting some standalone financing, operates under the scope of the EU.
Industry
- Consumer Electronics – Smarty Brands Group operates in the consumer electronics sector as a retailer and distributor of electronics and mobile phones.
- Financial Services – The article discusses a significant financing deal orchestrated by multiple Czech banks.
- Legal Services – CMS provided legal advisory services for the financing deal.
Financials
- Undisclosed – The total amount of financing provided for Smarty Brands Group was not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Smarty Brands Group | Target Company | Company | A Czech Republic-based retailer and distributor of consumer electronics and mobile phones. |
| Ceska Sporitelna | Financing Bank | Company | A major bank in the Czech Republic participating in Smarty's financing. |
| Ceskoslovenska Obchodni Banka | Financing Bank | Company | A Czech bank involved in the financing arrangement. |
| Komercni Banka | Financing Bank | Company | Another participant bank in the Smarty financing deal. |
| Raiffeisenbank | Financing Bank | Company | A Czech bank that is part of the financing club. |
| CMS | Legal Advisor | Company | The law firm advising the banks on the financing structure for Smarty Brands Group. |
| European Investment Fund | Support for Standalone Financing | Company | Part of the EU infrastructure funds backing some standalone financing provisions. |