The Very Group is back in the news again this spring, this time on the fiscal front to refinance its debt. 

The digital fashion group said it has entered into a notes purchase agreement for the issuance of £598 million privately placed senior secured notes due August 2027. The notes are expected to be issued to certain investors on or around 2 June, subject to customary conditions. 

The cash proceeds of the Private Placement, together with additional available cash, “are expected to be used to redeem in full on or around 1 August… the group’s existing £575 million senior secured notes due August 2026.

Under certain conditions, including deleveraging and certain credit ratings outcomes, the maturity of the new notes can be extended to August 2030, it added.

The group said it has also received commitments from lenders for a ‘single super senior revolving credit facility’ of up to £150 million, which would supersede and replace the group’s existing £50 million senior secured revolving credit facility and £100 million super senior revolving credit facility. The Amended Revolving Credit Facility will mature in February 2027.

Furthermore, the group’s extended the maturity date under its existing senior term loan facility agreement dated 16 February to 1 August 2027, which will also be extended to 1 August 2030 upon a maturity extension of the senior secured notes. In addition, the group has drawn an additional £42.8 million for general corporate purposes, including the payment of all fees associated with refinancing.

Ben Fletcher, chief finance and transformation officer at The Very Group, confirmed: “We committed to a timely and transparent refinancing of our existing debt. Extending the Group’s financial maturities out until 2027 demonstrates the continued confidence of our partners in The Very Group. 

“Our business is performing strongly as evidenced by our first half results, and today’s announcement allows us to focus on the continued delivery of our plan, with the ongoing support of our partners IMI and Carlyle. I would like to thank all our advisors for their support.”

Looking ahead and based on “current market conditions, historical financial performance and management expectations”, the group said it anticipates achieving Adjusted EBITDA in the range of £300 million-£305 million for FY25, and in the range of £305 million-£320 million for FY26, “largely driven by a reduction of distribution and other operating costs through certain cost savings initiatives, and assuming that historical trends in respect of other key financial metrics will continue in future periods”.