(Alliance News) - Asos PLC on Thursday announced plans to boost its balance sheet through a new long-term GBP275 million financing facility alongside a GBP75 million placing as it continues to restructure the business.
The online fashion retailer said the new capital structure provides increased flexibility and simplicity under a single lender.
Asos has entered into a GBP200 million senior term loan and a GBP75 million super senior revolving facility with specialist lender Bantry Bay Capital Ltd through to April 2026, which will replace the existing GBP350 million revolving credit facility which was due to expire in November 2024.
The GBP75 million placing will be priced at 418.1 pence and there will be a separate retail offer of up to GBP5 million.
Shares in ASOS closed 3.2% lower at 422.10 pence in London on Thursday.
Back in October, Asos announced a turnaround plan. It said it would look to improve inventory management, reduce its costs and "reinforce" its leadership team and culture. The plan was one of Jose Calamonte's first acts as chief executive.
But some City analysts felt a fundraise would be required to get the ball rolling.
Analysts at Shore Capital said earlier in May: "Given the ongoing restructuring and cost savings initiatives, it is becoming increasingly evident that Asos will need to seek further capital infusion to support its long-term viability, in our view."
ASOS said today's move together with actions taken under its Driving Change agenda would "create a stable base for ASOS' continued execution of its strategy and future return to growth."
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
ASOS (ASC)