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Very Group raises 575 million pounds via bond issue

By Huw Hughes

11 Aug 2021


Image: The Very Group

The Very Group has raised 575 million pounds to refinance its debt through the issuing of senior secured notes due to expire in 2026.

The notes are rated “B3 stable” by risk assessment firm Moody’s and “attracted strong demand from investors”, with an orderbook at the final pricing of over 950 million pounds, Very Group announced Tuesday.

It said the gross proceeds of the funding will be used, together with cash on its balance sheet, to redeem in full the issuer’s 550 million pounds aggregate principal amount of 7.75 percent senior secured notes due 2022 and to pay the costs fees and expenses incurred in connection with the transactions.

The group’s chief financial officer Ben Fletcher said the offer was “significantly oversubscribed”, which he said was a testament to the company’s “strong performance and resilient business model”.

“The group is well-positioned to continue its strong trading trajectory and remains focused on its purpose of making ‘good things easily accessible to more people’,” he said.

Earlier this month, it was reported that Very Group was gearing up for a potential 2022 IPO.

The group’s owners, the Barclay family, appointed STJ Advisors to prepare the company for its stock market debut as early as next year, Sky News reported.

Very Group, which owns brands Very and Littlewoods, reported a 2.9 percent increase in revenue to over 2 billion pounds in the year to June 2020.