Member Article

Matalan completes £492 million refinancing with syndicate

North-West based fashion and homewares retailer Matalan has completed a £492 million debt refinancing with a banking syndicate comprising of Lloyds Bank Commercial Banking, Morgan Stanley and Barclays.

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

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.

The Skelmersdale-headquartered 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.

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.”

Lloyds Bank’s funding was provided by the bank’s Mid Markets, Acquisition Finance and Debt Capital Markets teams.

Paul Foster, Head of Lloyds Bank’s Mid Cap team, said: “We have a long and productive relationship with Matalan having acted upon both of the company’s previous bond issuances.

“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.”

This was posted in Bdaily's Members' News section by Simon Malia .