Darrois Villey Maillot Brochier and Gide Loyrette Nouel have advised Europcar Mobility Group on obtaining €307 million in additional financing to help the rental car group face a sharp downturn in business because of the COVID-19 crisis, according to statements from Europcar and the law firms.

The new funding will enable Europcar to deal with the "significant business impacts from lockdowns and travel restrictions everywhere it operates while also allowing to progressively resume its activities post-crisis," Caroline Parot, Europcar's chair, said in a statement.

Europcar joins the list of travel-related companies worldwide seeking help from public and private sector sources to make sure they can restart once governments lift mobility restrictions imposed to stem the spread of the disease. Air France-KLM Group recently secured €7 billion in loans backed partially by the French government.

The travel sector was one of the first and hardest-hit by the COVID-19 crisis and will be one of the last to restart as governments begin easing restrictions on other sectors to get their economies moving again.

Europcar is one of the largest rental car groups in the world, with revenue of €3 billion in 2019 and operations in 140 countries. It posted a 34.6% drop in revenue in March and noted that "the situation remains highly uncertain and that it is premature to share any 2020 earnings outlook."

The bulk of Europcar's new financing is a €220 million term loan, signed with Europcar's main French and international banks and 90% guaranteed by the French state. The loan will have an initial maturity of one year and gives Europcar an option extend up to five years. Among the conditions of the loan is that Europcar agrees not to pay dividends in 2020 and 2021.

Europcar has also obtained €67 million in additional funding facility for the group's Spanish activities, 70% guaranteed by the Spanish state.

It has secured a €20 million increase in its revolving credit facility from a group of French banks, guaranteed by the private equity group Eurazeo, which owns just under 30% of Europcar Mobility Group.

The Darrois Villey team was led by Bertrand Cardi and Laurent Gautier, partners in mergers and acquisitions and capital markets. They were joined by Martin Lebeuf, managing partner and a finance specialist; Didier Théophile, a partner in competition; and François Kopf, a partner in litigation, M&A and capital markets, and restructuring and insolvency.

The Gide team was led by Eric Cartier-Millon, a partner in banking and finance, working with Jérémie Bismuth, banking and finance counsel. Stéphane Hautbourg, a competition partner, advised on state aid, and Melinda Arsouze, a banking and finance partner, advised on capital markets.

White & Case advised the banking group, which included Bank of America Merrill Lynch International, Banque Européenne du Crédit Mutuel, BNP Paribas, Crédit Agricole Corporate and Investment Bank, Crédit du Nord, Crédit Industriel et Commercial, Deutsche Bank Luxembourg, Goldman Sachs Bank Europe, HSBC France, ING Bank N.V. (French branch), Natixis and Société Générale.

Eurazeo was advised by Sullivan & Cromwell.