THG refinances its debt as Moulding laments personal sacrifices since floating
THG has refinanced its debt and raised additional funds through a share placing in a move designed to cut its lending costs and simplify its structure following the demerger from its Ingenuity division earlier this year.
Matthew Moulding, the founder and chief executive of the Manchester-based ecommerce business underwrote the process by subscribing up to £31.2m of shares, priced at 32.3p, a discount of 5% to the closing price last night (24 March 2025).
He has also injected £54.6 million via a non-interest bearing convertible loan.
THG has also extended an existing £150 million revolving credit facility to May 2029.
“This represents another significant step in THG’s simplified debt and equity investment case as a cash generative global retailer and brand owner, well positioned to deliver on its next phase of development in its growing consumer markets,” the company said in a statement.
In a LinkedIn post last night (24 March 2025) Moulding once again lamented his decision to float the business on the London Stock Exchange and pointed to his personal sacrifices in supporting the business.
“Joining the LSE 4 ½ years ago hasn’t proved too profitable for me or my family. I will soon have bought £110m of THG shares in less than 5 years. Despite the CEO role normally attracting remuneration of c£3m a year, since IPO I’ve waived all remuneration and expenses, effectively paying to go to work each day. I do get free coffee though.”
Likening his leadership of THG to parenting, he added: “In respect of THG, this is mine. Each decision, from investing £110m in THG shares, buying control of Ingenuity at the end of 2024, and waiving £15m remuneration since IPO, has been my best take on parenting my corporate offspring.
“I’m not aware of anyone ever listing on the LSE and taking a similar path. Smart folk. I mean, why would they? Hopefully time will prove it’s been a path worth taking 💪.”
The move will reduce total leverage from 3.2x to 2.6x based on continuing adjusted earnings before interest, tax, depreciation and amortisation, excluding Ingenuity, of £92 million in 2024, on a fundamentally more cash generative business.
