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Manchester-based online retailer THG has announced it has completed its debt refinancing arrangement up until December 2029.
The news comes as THG revealed it has been undertaking a comprehensive refinancing exercise which includes a partial Amend and Extend of the Term Loan B to extend the maturity of €445m (£376.6m) to December 2029; a partial repayment of £74m of the Term Loan A and the remaining €155m (£131m) of the TLB through a combination of cash on balance sheet and the Equity Contribution.
The move also sees it extend the maturity of the existing £150m RCF from May 2026 to May 2029.
As a result of the proposed refinancing, net total leverage (excl. leases) decreases from 3.2x to 2.2x pre deal fees based on FY 2024 continuing Adjusted EBITDA (excluding Ingenuity) of £92m.
THG said it is a “fundamentally cash generative business” and the “refinancing underlines the company’s target to progress towards a neutral net cash/net debt position”.
J.P. Morgan and Barclays acted as Mandated Lead Arrangers and Physical Bookrunners on the debt refinancing, with HSBC Bank plc, NatWest Markets PLC and BNP Paribas S.A. as Joint Bookrunners.
Clifford Chance LLP also acted on behalf of the company, with Latham and Watkins LLP acting for the lenders.
Last month the business raised £90m with the support from new investors and existing shareholders, including a £60m contribution from founder and chief executive Matthew Moulding.
The equity contribution was made up of £30m of new ordinary shares, and Moulding’s £55m convertible loan and £5m of partly paid shares.
At the time, THG said: “We are pleased with the support from both our existing and new investors. This raises funds to reduce our gross debt and strengthen our balance sheet as we move forward.”
