British fashion retailer New Look has announced the completion of its major recapitalisation launched earlier this year when its trading was hit by the Covid-19 pandemic.
The company said the recapitalisation “significantly reduces long-term debt and provides financial strength and flexibility to deliver a sustainable trading platform for the company”.
The refinancing includes significant deleveraging of the balance sheet by way of a debt for equity swap on the retailer’s current debt, reducing its senior debt from around 550 million pounds to 100 million pounds, and significantly decreasing interest costs.
It also includes an extension of primary working capital facilities, which provide further financial support with no near-term maturities, as well as an injection of 40 million pounds of new capital to support the business plan.
“I would like to thank our banks, bondholders, landlords and creditors for their support during our financial recapitalisation process and CVA,” CEO Nigel Oddy said in a statement. “Completion of the transaction today means we now have significantly enhanced financial strength and flexibility, and a sustainable platform for future trading and investment.
“Looking ahead, notwithstanding the challenging market conditions, we are focused on delivering our strategy to enhance our position as a leading convenient broad appeal fashion destination.”
Photo credit: New Look, Facebook