B&M Bargains ‘to refinance £585m of loans’
DISCOUNT retailer B&M Bargains is planning to refinance £585m of loans used to fund 2012’s buyout to put it in better shape ahead of a stock market listing.
According to reports Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and Goldman Sachs are expected to lead the refinancing of the Speke-based chain.
A lender meeting is due to take place today when more details of the deal will emerge.
The company has grown to a chain of more than 350 shops, employing around 15,000 staff. Bobby, Robin and Simon Arora sold a 60% stake to US private equity firm Clayton, Dubilier & Rice in December 2012 in a deal which valued the group at around £900m.
Reuters said the acquisition was done with a £125m term loan A, a £335m term loan B, a £100m revolver and a £25m acquisition facility. The owners are now considering a stock market flotation which could value the business at £2bn.
Meanwhile, Property Week has reported that B&M is planning an 800,000 sq ft distribution centre in southern England. It says it has launched a requirement for 35-40 acres of land to build a purpose-built distribution centre and is scouring a wide search area from the M4 corridor north to the Midlands and parts of Hertfordshire.
