Monday, February 18, 2019

Matalan funds growth with £492m refinancing


Matalan has refinanced £492m worth of debt in order to fund its growth ambitions.

The company has successfully refinanced its existing debt by issuing two new bonds worth £342m and £150m which are due for repayment in 2019 and 2020.

Stephen Hill, chief financial officer at Matalan, said: “This refinancing strengthens our financial position, providing us with a longer-term and more flexible capital structure that underpins the growth plans we have for the business.”

The retailer, which has 227 stores across the UK and 14 franchised stores overseas, posted revenues or £1.12bn and EBITDA of £95.4m in the 53 weeks to 1st March.

The banking syndicate includes Lloyds Bank Commercial Banking, Morgan Stanley and Barclays.

Lloyds Bank Commercial Banking acted as joint mandated lead arranger on the bond offering and also increased the size of Matalan‘s revolving credit facility from £30m to £50m as part of the refinancing.

Paul Foster, head of Lloyds Bank‘s Mid Cap team, explained: “This refinancing lowers Matalan‘s cost of borrowing and consolidates their medium to long term funding structures. The business is well positioned to exploit the opportunities presented by the economic revival and upswing in consumer confidence.”


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