// Asos raises £75m from investors
// It has inked a £275m refinancing with specialist lender Bantry Bay
Asos has raised £75m from shareholders and has struck an asset-based lending refinancing deal to strengthen its balance sheet.
The retailer, which is currently amid a turnaround plan in the face of eye-watering losses, has inked a new long-term £275m asset-based financing facility with specialist lender Bantry Bay through to April 2026.
It replaces its old £350m revolving credit facility, which was due to expire next year.
The online retailer insisted that the new asset-based facility was “covenant light” and estimates an annual interest of 11% on the credit.
The £75m fundraising is fully underwritten by three shareholders, including the investment vehicle of Bestseller, owned by Anders Povlsen.
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Asos has also launched a separate retail offer of up to £5m in ordinary shares.
The retailer said: “This new capital structure provides increased flexibility against a challenging macro-economic backdrop and the stability to focus on long-term value creation.”
The fundraising comes as new Asos boss José Antonio Ramos Calamonte looks to simplify the business.
It is amid a £300m cost-saving and profit optimisation programme, which ex-Inditex exec Calamonte terms ‘the Driving Change’ agenda, as it looks to overhaul its business model, which has so far seen job cuts, warehouse closures and a mass stock write-off.
The online retailer posted a reported pre-tax loss of £290.9m in the six months to February 28, compared to a £15.8m loss the year before.
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