Matalan completes refinancing with banks syndicate

Matalan has announced the completion of a 492 million pounds debt refinancing with

a banking syndicate that includes Lloyds Bank Commercial Banking, Morgan Stanley and Barclays.

As explained by the affordable fashion and homeware retailer, the company has successfully refinanced its existing debt by issuing two new bonds worth 342 million pounds and 150 million pounds, due for repayment in 2019 and 2020 respectively.

“This refinancing strengthens our financial position, providing us with a longer-term and more flexible capital structure that underpins the growth plans we have for the business,” summarised Stephen Hill, Chief Financial Officer at Matalan.

Likewise, Paul Foster, Head of Lloyds Bank’s Mid Cap team, said: “We have a long and productive relationship with Matalan having acted upon both of the company’s previous bond issuance.

"This refinancing lowers Matalan’s cost of borrowing and consolidates their medium to long term funding structures. The business is well positioned to exploit the opportunities presented by the economic revival and upswing in consumer confidence,” highlighted Foster in a note issued Monday.

Lloyds Bank Commercial Banking acted as joint mandated lead arranger on the bond offering and also increased the size of Matalan’s revolving credit facility from 30 to 50 million pounds as part of the refinancing.