26 Jun 2014 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO ANY PERSON LOCATED OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT
26 June 2014
Debenhams plc
REFINANCING OF BORROWING FACILITIES
Debenhams plc, the leading international, multi-channel brand, has announced that it has refinanced its borrowing facilities.
Debenhams has priced its offering of £225 million Senior Notes (the "Notes") due 2021 at 5.25%. The offering was upsized from the £200 million aggregate principal amount announced on 20 June 2014. The offering is expected to close on 2 July 2014 upon the satisfaction or waiver of customary closing conditions. The proceeds from the issue and sale of the Notes, when completed, will be used to prepay existing credit facilities of Debenhams and to pay the fees and expenses related to the offering and sale of the Notes. The Notes will be guaranteed on a senior basis by certain of Debenhams' UK subsidiaries.
At completion, Debenhams will contemporaneously extend its existing bank financing arrangements to October 2018 in the form of a £425 million revolving credit facility.
The refinancing of borrowing facilities in this way will lead to an interest charge for the financial year to August 2015 of £22-24 million, in line with guidance provided on 20 June.
Michael Sharp, Chief Executive of Debenhams plc, said:
"This refinancing will allow us to reduce our reliance on traditional bank funding and fulfil our desire to diversify our sources of funding. In addition, we expect to achieve a material saving in interest costs over the life of the Notes. The Notes offering was well-subscribed and we believe the level of demand reflects the strength of investor confidence in our business and our strategy to build a leading international, multi-channel brand."
Barclays, Lloyds Bank and The Royal Bank of Scotland acted as Joint Global Co-ordinators and Joint Bookrunners. Lazard provided independent advice to Debenhams.
Enquiries
Lisa Williams, Debenhams plc 020 3549 6304, 07908 483841
NOTES TO EDITORS
Debenhams is a leading international, multi-channel brand with a proud British heritage which trades out of 243 stores across 28 countries. Debenhams gives its customers around the world a unique, differentiated and exclusive mix of own brands, international brands and concessions.
In the UK, Debenhams has a top three market position in womenswear and menswear and a top ten share in childrenswear. It holds the number two market position in premium health and beauty.
Debenhams has been investing in British design for 20 years through its exclusive Designers at Debenhams portfolio of brands. Current designers include Abigail Ahern, Ted Baker, Jeff Banks, Jasper Conran, FrostFrench, Patrick Grant, Henry Holland, Betty Jackson, Ben de Lisi, Todd Lynn, Julien Macdonald, Jenny Packham, Pearce Fionda, Stephen Jones, Preen, Janet Reger, John Rocha, Jonathan Saunders, Ashley Thomas, Eric Van Peterson and Matthew Williamson.
Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Debenhams' current expectations concerning future events and actual results may differ materially from current expectations or historical results. Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into or forms (or is deemed to form) part of this announcement.
This announcement is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration. The Company does not intend to register any portion of this offering in the United States or to conduct a public offering in the United States or any other jurisdiction. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the Company and its management, as well as financial statements.