Very Group Finalizes Refinancing to Fuel Growth from 2029 Under New Ownership
The Very Group, a prominent home shopping retailer headquartered in Speke, Liverpool, has successfully completed a significant long-term refinancing arrangement. This strategic move, orchestrated by its new owner, the American investment giant Carlyle, is designed to position the company for sustained growth starting in 2029 and beyond.
New Funding Structure and Extended Maturities
Under the refinancing plan, the group has extended and renewed its key debt facilities, ensuring long-term financial stability. All note classes within its UK securitisation facility, which totals £1.77 billion and has been operational for over twenty years, have seen their maturities pushed to February 1, 2029. This extension secures funding for the next three financial years, providing a solid foundation for the business.
Credit rating agencies have responded positively to these changes. Fitch has confirmed ratings of "AAA" and "A" for the A notes, with a "BBB" rating for the B notes. Meanwhile, DBRS has upgraded the notes to "AAA" and "AA" respectively, reflecting enhanced financial confidence.
Enhanced Financial Terms and Carlyle's Support
In addition to the securitisation facility, Very's £150 million super senior revolving credit facility has been renewed, with its maturity extended to February 2030. As the group met deleveraging conditions outlined in its senior secured notes, the coupon rate has been reduced from 13.5% to 9.75%, and the maturity date has been extended from August 2027 to August 2030.
The refinancing has also led to a reduction in overall debt by £150 million, thanks to capital support from Carlyle. This financial backing is expected to be favorably viewed by rating agencies, further strengthening the group's market position.
Leadership Perspectives on the Refinancing
Edward Fry, Chief Financial Officer at The Very Group, emphasized the significance of this development. "Securing this long-term funding reflects the confidence of our lenders in the strength of our business," he stated. "The combination of extended maturities, improved margins, and further deleveraging provides a stable platform for continued investment in our digital and customer proposition, while maintaining a disciplined approach to balance sheet management."
Fry added, "The £150 million capital support from Carlyle is a reflection of their strong and ongoing support for the business. This leaves us in a robust financial position and well placed to support future growth."
Background on Ownership and Strategic Vision
Carlyle acquired The Very Group in November of last year, marking the end of a twenty-year ownership period under the Barclay family. At the time of the takeover, Very Group CEO Robbie Feather highlighted the transition as a pivotal moment. "This marks an important milestone for The Very Group as we move into an exciting new phase of growth," he said. "We are delighted to continue to partner with Carlyle and IMI. Their continued backing provides us with a stronger foundation to execute on our strategy, increase investment in technology and the customer experience, and to build on the momentum across the business."
With this refinancing complete, The Very Group is now strategically positioned to leverage its enhanced financial structure to drive innovation, expand its digital offerings, and capitalize on growth opportunities in the competitive retail sector from 2029 onward.
