The Very Group secures refinancing following sales speculation

The Very Group has secured a 598 million pound refinancing by issuing senior secured notes due in August 2027. The company has further extended its 150 million pound revolving credit facility, replacing its existing 50 million pound senior facility and 100 million pound super senior facility.

The amended facility will now mature in February 2027. The group has also extended the maturity date of its existing senior term loan from February 16, 2024, to August 1, 2027.

In a release, chief finance and transformation officer at The Very Group, Ben Fletcher, said the company was “committed to a timely and transparent refinancing of our existing debt”, with the aforementioned extensions demonstrating “continued confidence” from partners.

Fletcher added: “Our business is performing strongly as evidenced by our first half results, and today’s announcement allows us to focus on the continued delivery of our plan, with the ongoing support of our partners IMI and Carlyle. I would like to thank all our advisors for their support.”

Back in October 2024, Very had been embroiled in sale speculation after it was said to have enlisted a number of banks to explore the option as part of a strategic review. Financial pressures continued to mount for the retailer into the new year, however, when credit rating agency Fitch Ratings downgraded the group’s credit rating to CCC+ and placed it on a negative watch, according to various media outlets.

For FY25, The Very Group has forecast an adjusted EBITDA in the range of 300 to 305 million pounds, and between 305 and 320 million pounds for FY26, driven by a number of cost savings initiatives.