The Very Group completes new long-term funding deal
The Very Group has successfully extended and renewed its key debt facilities in a move that its owners say positions the business for growth.
The news follows investment firm Carlyle becoming the group’s controlling shareholder late last year and the end of the Barclay family’s involvement in the business.
Subscribe to TRBThe long-term funding has been secured to 2029 and beyond. All note classes within the group’s UK securitisation facility have been successfully extended, with maturities pushed out to 1 February 2029. Furthermore, the group’s £150 million super senior revolving credit facility has been renewed, with its maturity extended to February 2030.
The Very Group’s UK securitisation facility, which totals £1.77 billion, has now been operating for over 20 years. The group said Fitch has confirmed ratings of “AAA” and “A” for the A notes and “BBB” for the B notes, while DBRS uprated the notes “AAA” and “AA” respectively.
Following the fulfilment of the deleveraging condition set out in the terms of the group’s senior secured notes, the notes’ coupon rate has been lowered from 13.5% to 9.75% and maturity has been extended from August 2027 to August 2030. The group’s overall debt has been reduced by £150 million with Carlyle’s capital support.
Edward Fry, chief financial officer at The Very Group, said: “Securing this long-term funding reflects the confidence of our lenders in the strength of our business.
“The combination of extended maturities, improved margins and further deleveraging provides a stable platform for continued investment in our digital and customer proposition, while maintaining a disciplined approach to balance sheet management.
“The £150 million capital support from Carlyle is a reflection of their strong and ongoing support for the business. This leaves us in a robust financial position and well placed to support future growth.”
Last month, The Very Group reported “resilient” Christmas and Black Friday trading with sales up 1.9% in the six weeks to 27 December.
