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Share Name Share Symbol Market Type Share ISIN Share Description
Debenhams LSE:DEB London Ordinary Share GB00B126KH97 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.104p +3.28% 3.278p 3.226p 3.278p 3.30p 3.12p 3.30p 9,363,924 16:35:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 2,277.0 -491.5 -37.5 - 40.25

Debenhams plc Update on refinancing discussions

12/02/2019 7:00am

UK Regulatory (RNS & others)


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RNS Number : 6977P

Debenhams plc

12 February 2019

This announcement contains inside information

12 February 2019

DEBENHAMS PLC

Update on refinancing discussions

New sourcing partnership announced with Li & Fung

Debenhams plc today provides an update on discussions with our lenders as we look to keep the company on a stable footing for a sustainable and profitable future. We have agreed an additional 12-month senior secured credit facility with certain of our current Revolving Credit Facility "RCF" lenders and Noteholders, together with the waiver and amendment of certain RCF covenants.

This additional facility fully utilises permissions within the terms of the current RCF and the Notes and provides GBP40m of increased liquidity headroom, available to draw as required. The facility will initially pay interest of Libor +5% cash coupon per annum, and will be secured over the assets of the existing guarantors of the RCF and the Notes.

The new facility agreement, which contains provisions for a step-up in pricing during calendar Q2, will act as a bridge to facilitate a broader refinancing and recapitalisation. In this context, we are continuing to engage constructively with our stakeholders, and intend to conclude a comprehensive refinancing by the end of this period. A further update will be provided in due course.

In the meantime, we continue to make operational improvements to support the business turnaround under the Redesigned strategy.

To that end, Debenhams has entered an agreement in principle with Li & Fung, the world's leading supply chain solutions partner for consumer brands and retailers, to develop a strategic sourcing partnership. This agreement is expected to cover a material part of our own-brand sourcing over time and will deliver benefits for both our customers and our stakeholders, through improved product quality and lead-times; higher achieved margins; and better working capital efficiency. Initial orders under the agreement are expected to commence shortly.

Sergio Bucher, CEO, said:

"Today's announcement represents the first step in our refinancing process. The support of our lenders for our turnaround plan is important to underpin a comprehensive solution that will take account of the interests of all stakeholders, and deliver a sustainable and profitable future for Debenhams.

"In addition, the partnership agreement we are announcing today with Li & Fung will be a key part of our turnaround plan. It gives us access to state-of-the-art technology in the LF Digital platform, providing end-to-end visibility across our supply chain. This will help us anticipate and respond more quickly to trends and our customers' preferences, as well as delivering better quality product."

Enquiries:

Analysts and investors

   Debenhams plc                                    Katharine Wynne, Director of Investor Relations 

020 3549 6304

Media

   Brunswick Group                                 Craig Breheny/Helen Smith/Fiona Micallef-Eynaud 

020 7404 5959

-ENDS-

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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February 12, 2019 02:00 ET (07:00 GMT)

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