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New Look has announced the completion of a “comprehensive” financial recapitalisation following the High Court’s sanction of New Look Financing’s scheme of arrangement.
The recapitalisation is set to “significantly” reduce long-term debt for the group, whilst providing financial strength, funding and flexibility to “deliver a sustainable trading platform for the business”.
The transaction includes a “significant” deleveraging of its balance sheet, with a debt for equity swap on New Look’s current debt, reducing senior debt from around £550m to around £100m.
The move will also extend its primary working capital facilities, which provide further financial support with no near-term maturities.
In addition, the latest transaction includes an injection of £40m of new capital to support the business plan.
CEO Nigel Oddy said: “I would like to thank our banks, bondholders, landlords and creditors for their support during our financial recapitalisation process and CVA.
“Completion of the Transaction today means we now have significantly enhanced financial strength and flexibility, and a sustainable platform for future trading and investment.”
He added: “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.”
