Furthermore, the restructure delivered £150m of new long term capital in the form of new Senior Secured Notes (SSN), which has been used to repay the £80m Bridge Facility, settle transaction costs and provide the retailer with additional liquidity to support the future development of the business.
Additionally, the retailer said the new flexible capital structure “possesses additional benefits” that will allow New Look to “better navigate the current market environment”, including:
- Lower overall cash debt servicing costs and flexibility to service debt either in cash or on a non-cash “pay in kind basis”
- No significant near-term maturities provide runway for management to focus on long term growth
- Strengthened liquidity provides the group with sufficient resources to accelerate investing in the business
Alistair McGeorge, executive chairman, said: “Today’s completion represents a significant milestone in our turnaround process and a major endorsement from our stakeholders in the strength of our brand and in management’s ability to deliver enhanced profitability through the wider strategy already being implemented.
“With a materially deleveraged balance sheet and a more flexible capital structure, we now have a stable operating platform, which positions us well to respond to challenges and grasp new market opportunities.”
He added: “We have already implemented significant improvements across our business, returning to a proven broad appeal product to rebuild our position in the UK womenswear market, enhancing our multichannel offering and bringing significant operational expertise to our business with the recent appointment of Nigel Oddy as chief operating officer.”