NKD secures 25 million euros debt facility

Grovepoint Capital and Hayfin Capital Management have provided a 25 million euros debt facility to German-based retailer NKD. Grovepoint and Hayfin jointly led and structured the debt financing, and Grovepoint acts as facility agent and security trustee for the lenders.

As explained by the retailer, the new financing will accelerate the growth and development of NKD and is an important step forward in the company’s strategic and operational turnaround under the ownership of OpCapita.

NKD, headquartered in Bindlach, Bavaria, is a discount fashion retailer, operating from 1,373 stores in Germany with a further 430 stores across Austria, Italy, Croatia and Slovenia. The business has a strong presence in smaller towns as well as on the high street and in shopping centres.

NKD was acquired by OpCapita, the European private equity firm, in November 2013. Since acquisition, OpCapita has carried out an intensive turnaround programme overseen by OpCapita operating partner, John von Spreckelsen, focused on returning the company to its core strengths.

As a result of the change programme, and according to the company´s board, NKD is experiencing like-for-like sales growth in a declining market, and OpCapita has returned a previously loss-making business to a break-even EBITDA level, through improved gross margins and good cost discipline.

NKD was advised by Alvarez & Marsal and Kirkland & Ellis. Grovepoint and Hayfin were advised by Mayer Brown.