Lloyds leads on £300m Matalan refinancing

NORTH West out-of-town fashion and homewares retailer Matalan has completed a £300m refinancing.

The funding includes a syndicated bank facility and a high yield bond led by Lloyds Bank Corporate Markets. The refinancing restructures existing debt facilities and is intended to support the Skelmersdale firm’s continued growth.

In addition to the new £50m revolving credit facility, Lloyds Bank Corporate Markets also acted as a joint lead manager on a £250m high-yield bond.

Paul Gilbert, acting chief executive and finance director at Matalan, said: “This refinancing enables us to simplify our debt structure and provides greater flexibility for management to concentrate on managing our business.

“We are now in a position to focus on the implementation of our growth strategy which will see continued store rollout, significant investment in our brand and development of our multi-channel vision.”

Paul Foster, deputy head of Lloyds Bank Corporate Markets in Manchester added: “Matalan is a highly cash generative business with strong prospects for the future.

“The retail market has been difficult for some time, but the business, largely on account of its strong brand, is well positioned to grow through its planned new store openings, strengthening online proposition and the continued success of its clothing lines.

“We have been working very closely with Matalan for some time and restructuring its balance sheet in this way will give the management team the flexibility it needs to push forward with its plans for the coming years.

“Our team of specialists has worked together to provide the right solutions and the size of the facility just emphasises our commitment to support local businesses with the right business plan and a strong balance sheet.”

Matalan, founded by former market trader John Hargreaves – who remains majority shareholder – now has around 210 stores nationwide and annual sales of more than £1.1bn.

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