New Look completes recapitilisation transaction
New Look has announced that it has completed a significant recapitalisation of its finances.
The fashion retailer said the move will give it the financial strength, funding and flexibility to execute its strategy.
The transaction has included a debt for equity swap on New Look’s current debt to reduce senior debt from around £550 million to £100 million and significantly decrease interest costs. It has also included an extension of primary working capital facilities and the injection of £40 million in new capital to support the retailer’s business plan.
Nigel Oddy, chief executive of New Look, 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.
“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.”
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