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United Kingdom : DEBENHAMS refunds with £225m bond

June 27, 2014

Department store Debenhams has refinanced its debts after introducing a 225m bond issue.

The dealer has sold 225m of senior notes due in 2021 at a 5.25 per cent yield. This was more than the 200m it had proposed to increase when it declared the bond issue last week.

Chief executive Michael Sharp, commented that the proposing was well-subscribed and would help minimize its reliance on traditional bank lending while diversifying its sources of financing.

He stated 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. The agreement will enable Debenhams to expand its bank facilities to 2018 in the form of a 425m loan.

Barclays, the Royal Bank of Scotland and Lloyds Bank served as joint global coordinators and joint bookrunners for the scheme. At the same time, Lazard advised Debenhams.

In December, Debenhams has permitted a tough 12 months, issuing its second profit warning in less than a year, after margins were hurt by fierce promotional activity.

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Source: TendersInfo (India)

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