The Very Group has successfully extended and renewed its key debt facilities, securing long-term funding to 2029 and beyond.
The refinancing, which was completed under the company’s owners, Carlyle, “significantly strengthens” the group’s capital structure and leaves the business “well positioned” for its next stage of growth, according to Very.
The news follows reports that Carlyle was planning to sell Very for £2bn after its acquisition from the Barclay family last year.
As part of the refinancing, all note classes within the retailer’s UK securitisation facility have been extended, with maturities extended to 1 February 2029.
The extension secures funding for the business for the next three financial years.
The changes have been completed while also improving note margins, Very said.
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In addition, the group’s £150m super senior revolving credit facility has been renewed, with its maturity extended to February 2030.
Following the fulfilment of the deleveraging condition set out in the terms of Very’s senior secured notes, the notes’ coupon rate has been lowered from 13.5 per cent to 9.75 per cent and maturity has been extended from August 2027 to August 2030.
The company’s overall debt has been reduced by £150m with Carlyle’s capital support, which is expected to be positively acknowledged by rating agencies.
The Very Group chief financial officer Edward Fry said: “Securing this long-term funding reflects the confidence of our lenders in the strength of our business.
“The combination of extended maturities, improved margins and further deleveraging provides a stable platform for continued investment in our digital and customer proposition, while maintaining a disciplined approach to balance sheet management.”
He added: “The £150m capital support from Carlyle is a reflection of their strong and ongoing support for the business.
“This leaves us in a robust financial position and well placed to support future growth.”
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