Iceland completes refinancing deal
Iceland Foods has completed a ¬£980 million debt refinancing deal as it looks to expand both in the UK and overseas.
The retailer has issued a £950 million high yield bond with banking group HSBC, which has also provided a £30 million super senior revolving credit facility.
Iceland will use the proceeds of the fundraising to refinance the existing debt relating to its management buyout led by chief executive Malcolm Walker in 2012. The funds will also support Iceland’s expansion which includes building the retailer’s international presence and opening 46 high street stores in UK towns with populations below 300,000.
HSBC's North West head of corporate Sacha Balachandran said: "We are pleased to have strengthened our relationship with Iceland by supporting this high yield bond issue and also providing the company with a new funding facility.
"Iceland continues to drive sales in the UK and overseas by adopting a clear strategy that differentiates it from the market. Customers like the value it offers and the convenience it provides, and this new fundraising will enable Iceland to open in more parts of the UK."
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