Strengthening Balance Sheet and Boosting EBITDA Projections
- Very Group secures £598m refinancing package
- Extends debt maturities until 2027
- Issues senior secured notes due in August 2027
- Replaces current revolving credit facility with a new one until February 2027
- Forecasts adjusted EBITDA of £300m-£305m in 2024/25, rising to £305m-£320m in 2025/26
- Very Group chief finance and transformation officer Ben Fletcher: ‘continued confidence of our partners in The Very Group’
- Online retailer reports pre-tax profit of £6.1m for the 26 weeks to 28 December
The Very Group has secured a major refinancing package worth £598m to strengthen its balance sheet and extend debt maturities. The online retail group will issue senior secured notes due in August 2027, while also extending its £150m revolving credit facility until February 2027. The money raised from the refinancing, along with some of the group’s existing cash, will be used to pay off £575m of debt that was originally due in August 2026. The new debt will be offered to investors in June, with the option to extend the repayment date to 2030 if certain conditions are met. The retailer is forecasting adjusted EBITDA of £300m to £305m in 2024/25, rising to between £305m and £320m in 2025/26, supported by ongoing cost-saving initiatives. Very Group chief finance and transformation officer Ben Fletcher said: ‘We committed to a timely and transparent refinancing of our existing debt, and I am delighted to be able to share this update. Extending the group’s financial maturities out until 2027 demonstrates the continued confidence of our partners in The Very Group. 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.’
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about The Very Group’s refinancing package, including details on the amount raised, maturity dates, and the use of funds. It also includes a quote from the company’s chief finance officer, as well as mentioning the business’s performance in the first half of the year.
Noise Level: 3
Noise Justification: The article provides relevant information about The Very Group’s refinancing package and its impact on the company’s financial position, including forecasted EBITDA. It also mentions the retailer’s performance in the first half of the year. However, it briefly touches upon Tesco’s competition in the grocery sector without providing significant details or analysis.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses The Very Group’s refinancing package worth £598m, which impacts the company’s debt maturities and balance sheet. It also mentions the forecasted adjusted EBITDA for future years. This makes it relevant to financial topics and has an impact on financial markets as it involves raising money from investors and extending debt maturities.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text and nothing catastrophic happened in the last 48 hours.
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