New Look completes refinancing plan

Further to its announcement in August, New Look has announced that it has completed its comprehensive financial recapitalisation.

The completion of the transaction follows the High Court’s sanction of New Look's Scheme of Arrangement.

It will provide New Look with the financial strength, funding and flexibility to execute on its strategy and includes:

• Significant deleveraging of balance sheet - a debt for equity swap on New Look’s current debt, reducing senior debt from £550m to £100m, and significantly decreasing interest costs.
• Extension of facilities - an extension of primary working capital facilities, which provide further financial support with no near-term maturities.
• New money investment - an injection of £40 million of new capital to support the business plan.

The refinancing follows the retailer’s successful turnover-based company voluntary arrangement which was finalised in September. The proposal included switching 68 stores to 0% rent and 402 stores converted to turnover-based leases.

Nigel Oddy, Chief Executive Officer, said: “I would like to thank our banks, bondholders, landlords and creditors for their support during our financial recapitalisation process and CVA. Completion of the Transaction today means we now have significantly enhanced financial strength and flexibility, and a sustainable platform for future trading and investment.

“Looking ahead, notwithstanding the challenging market conditions, we are focused on delivering our strategy to enhance our position as a leading convenient broad appeal fashion destination.”