Matalan bondholders agree extension to £350m repayment deadline
Out-of-town discount retailer, Matalan, has achieved an extension to a £350m loan repayment.
The retailer must repay a £350m bond next January, while a further £130m instrument is scheduled for repayment a year later.
However, Matalan has announced that its first lien bondholders have agreed to extend the January 2023 maturities to July 2023.
The Knowsley-based business revealed that more than 90% of holders acceded to a lock up agreement which extends the maturity of the first lien notes.
It said: “This is an important milestone in Matalan’s comprehensive recapitalisation plan and provides increased certainty to our colleagues, suppliers and partners.
“Having obtained a level of noteholder support, which now exceeds the 90% threshold required to extend maturities under the terms of the bond indenture, the company will launch a consent solicitation through the clearing systems today (October 17), with a deadline of 5pm on Tuesday 25 October 2022.”
The business announced in September that it is up for sale after its founder, John Hargreaves, stepped down as executive chairman to launch his own bid to buy the business he founded in 1985.
At the end of the second quarter period last month, Matalan had unrestricted cash on balance sheet of £101.6m, compared with £173m a year ago and £73.3m in 2020.
The group has developed a four-year business plan which estimates that it can increase its annual revenues from £1.199bn in fiscal year 2023, to £1.284bn in 2024, £1.381bn in 2025, and £1.444bn the following year.
Last week it was reported that Elliott Advisers, which owns Waterstones, is backing Mr Hargreaves in his bid to win back control of the group.