The Very Group Limited announced the successful extension and renewal of its key debt facilities, securing long-term funding out to 2029 and beyond.
The refinancing, completed under its owner The Carlyle Group, significantly strengthens the Group’s capital structure and positions the business for its next phase of growth.
As part of the transaction, all note classes within the Group’s UK securitization facility have been extended, with maturities pushed out to 1 February 2029. The facility, which totals £1.77 billion and has been operating for more than two decades, secures funding for the next three financial years. The extension was completed alongside improved note margins.
Ratings agency Fitch confirmed ratings of “AAA” and “A” for the A notes and “BBB” for the B notes, while DBRS upgraded the notes to “AAA” and “AA” respectively.
In addition, the Group’s £150 million super senior revolving credit facility has been renewed, with its maturity extended to February 2030.
Following the fulfilment of the deleveraging condition outlined in the terms of the Group’s senior secured notes, the coupon rate on those notes has been reduced from 13.5% to 9.75%, and their maturity has been extended from August 2027 to August 2030.
The Group’s overall debt has been reduced by £150m with capital support from Carlyle, a move that is expected to be positively acknowledged by rating agencies.
KEY QUOTES:
“Securing this long-term funding reflects the confidence of our lenders in the strength of our business. 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. The £150m 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.”
Edward Fry, Chief Financial Officer, The Very Group
