HMV closes refinancing deal with lenders
HMV has been reported to have finalised a £220 million refinancing deal with its banks. The news will be welcome news for investors who at one stage feared for the group's collapse as it fought against its £170 million debt mountain.
Simon Fox, HMV's chief executive, is understood to have struck a two-year deal with the company’s lenders which are led by Royal Bank of Scotland and Lloyds Banking Group. A report by Sky News has claimed that the lenders will be granted warrants in the company for up to 5% of HMV’s shares to enable them to benefit from any future recovery in the HMV share price.
HMV has recently re-focused the business prioritising the sale of gadgets such as iPods and tablet computers to combat falling sales of CDs and DVDs.
The news follows the group's sale of HMV's sister chain, Waterstone's, to the Russian billionaire Alexander Mamut for £53 million last month.
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