New Look has completed a major recapitalisation of its finances.
The struggling fashion chain said the refinancing would provide it with the strength, funding and flexibility to move forward.
As part of the transaction, New Look has deleveraged its balance sheet through a debt-for-equity swap, reducing its current senior debt from £550m to £100m, while also decreasing interest costs.
The refinancing also includes an extension of primary working capital to provide further financial support with no near-term maturities and a £40m investment of new capital to drive the business’ strategy forward.
The refinancing was initially announced in conjunction with New Look’s CVA in August.
Chief executive Nigel Oddy 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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