Manufacturer refinances months after botched £400m bond issue
Carpet manufacturer Victoria has refinanced its £380m debt facilities, months after a botched bond issue caused its share price to tank.
Shares in the floorcoverings business fell by 35% in two days in October, wiping more than £260m off its market value, as investors reacted badly to the plans.
At the time chairman Geoff Wilding blamed poor communication which he said “left an open goal for those with less than pure motives to spread outrageous untruths”.
The Kidderminster-based company has now secured long-term funding for five years from Credit Suisse, working alongside the Group’s existing banks, to replace the Group’s existing EUR445m debt facilities.
Wilding said: “The board has been evaluating a number of alternative debt finance proposals in recent months and has chosen this option due to the improved combination of pricing, covenant flexibility, duration, and access to additional funding to support further growth.”
Its share price remains subdued, and last night’s close of 490p was still nearly 20% below the level seen before the bond issue plans were revealed.