DFS gets comfortable with £230m funding package
RECENTLY listed sofa retailer DFS has secured a £230m funding package from a banking syndicate led by Lloyds Bank Commercial Banking.
Founded in 1969 by Lord Kirkham, DFS has grown to control a 26% market share, though it floated £40m below target on its stock market debut .
The Doncaster-headquartered business has over 100 stores across the UK, Ireland and the Netherlands.
The funding includes a £200m term loan that will be used to repay existing debts and a £30m revolving credit facility to provide day to day working capital.
HSBC, RBS, Barclays, UBS and Jefferies are part of the syndicate.
In the 12 months to November 1st 2014 the business recorded revenues of £675m and adjusted EBITDA of £85m, and acquired Sofa Workshop in 2013 to appeal to the luxury brand niche.
Bill Barnes, finance director at DFS, said: “The new funding agreement enables us to repay existing debts and thereby reduce our overall cost of borrowing.
“Our banking partners were supportive throughout the IPO process and have put in place a structure that provides a robust platform for future growth.”
Richard Townsend, relationship director at Lloyds Bank Commercial Banking, said: “DFS has been on a steady upward trajectory in recent years, with economic confidence and a recovery in the housing market leading to increased consumer spending.
“We have worked closely with the management team for several years and are pleased to support them during the company’s next stage of growth.”
