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THG has successfully fundraised £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.
The firm wrote in its statement: “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.”
This fundraising will be used alongside company cash to reduce gross leverage through early repayment on the Term Loan A, which is worth £109m, and downsizing the Term Loan B by €125m (£104.4m) to €475m (£397m).
Following on from the Ingenuity demerger and FTSE 250 inclusion, the equity placing and collective refinancing is said to represent another “significant” step in THG’s simplified debt and equity investment case as a cash generative global retailer and brand owner.
According to the group, it is well positioned to deliver on its next phase of development in its growing consumer markets.
Moulding also shared in a recent LinkedIn post that he had invested £110m in THG shares over the last five years, despite waiving his £3m annual salary and expenses since the company’s initial public offering (IPO).
