Co-op agrees £1bn refinancing
THE Co-operative Group – the Manchester-based food, finance to funerals group, has agreed a £950m refinancing deal with a club of banks.
The mutually-owned organisation, which is set to acquire more than 600 branches fom Lloyds Banking Group, said the senior debt facilities have the capacity to be increased to £1bn.
The refinancing replaces and enhances existing facilities that mature in 2013. The banking club comprises Barclays Bank, Handelsbanken Capital Markets, Svenska Handelsbanken AB), HSBC, Lloyds TSB Bank.
The Royal Bank of Scotland alos particiapted as joint mandated lead arranger and bookrunners along with The Co-operative Bank as joint mandated lead arranger, and Bank of Ireland as lead arranger.
The member-owned organisation said the new finance package would enable it to “continue to invest in and develop its growing family of trading businesses which includes the UK’s fifth largest food retailer, the largest funerals operator, the third largest pharmacy chain, and a newly authorised and expanding Legal Services business.”
The £13bn turnover group has 4,800 outlets nationwide and employs more than 106,000 people.
The Co-operative Group was advised by London-based law firm Reed Smith and the bank group was advised by Linklaters.
