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Carpetright PLC (CPR)

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Tuesday 27 August, 2019

Carpetright PLC

Debt financing update

RNS Number : 1537K
Carpetright PLC
27 August 2019
 

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.

 

Carpetright plc

 

("Carpetright" or the "Company")

 

Debt financing update

 

Carpetright today announces that Meditor European Master Fund Limited ("Meditor"), a substantial shareholder (as defined by the UKLA's Listing Rules) of the Company, has agreed to purchase the Company's revolving credit facility ("RCF") directly from the Company's current lending banks, NatWest and AIB (the "Lenders"). The terms of the RCF remain unchanged.

 

The RCF is a £40.7m facility, having recently been reduced following the sale of two properties in Amsterdam, the Company's level of indebtedness likewise reduced by a commensurate amount. The Company also has committed overdraft facilities (the "Overdrafts") totalling £6.5m, themselves also proportionately reduced following the property sales. The Overdrafts will continue to be provided by NatWest and Ulster Bank, however Meditor has agreed to enter into participation agreements with NatWest and Ulster Bank, pursuant to which Meditor will acquire a 100% participation interest in each overdraft facility, effectively providing funding for the banks. The terms of the Overdrafts remain unchanged.

 

Meditor's purchase of the RCF and entry into participation agreements in respect of the Overdrafts are at arms-length from the Company.  In connection with the arrangements Meditor did not seek any assurances from the Company, did not propose board representation and did not request structural changes in the business. Meditor has confirmed it now intends to engage with the Company with a view to providing a more stable and longer-term funding platform.

 

- ends -

 

 

For further enquiries please contact:

 

Carpetright plc

Wilf Walsh, Chief Executive Officer

Jeremy Simpson, Chief Financial Officer

Tel: 01708 802000

 

Citigate Dewe Rogerson

Kevin Smith / Nick Hayns

Tel: 020 7638 9571

 

 

Notes to Editors

Carpetright plc is Europe's leading specialist floor coverings and beds retailer. Since the first store was opened in 1988 the business has developed both organically and through acquisition within the UK and other European countries. The Group is organised into two geographical regions, the UK and the Rest of Europe (comprising the Netherlands, Belgium and the Republic of Ireland).

 

LEI: 213800GO32BSNNHXID90


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