Very Group seals £598m refinancing deal

The Very Group has secured a major refinancing package worth £598m as it looks to strengthen its balance sheet and extend debt maturities.

The online retail group confirmed it will issue senior secured notes due in August 2027, while also extending its £150m revolving credit facility until February 2027.

The money raised from the refinancing, along with some of the group’s existing cash, will be used to pay off £575m of debt that was originally due in August 2026. The new debt will be offered to investors in June, with the option to extend the repayment date to 2030 if certain conditions are met.

The retailer said the new revolving credit facility will replace its current funding.

• Related Story

  • 

    Very Group returns to profit despite softer sales

    19/02/2025 x 3:42 PM

Looking ahead, the business is forecasting adjusted EBITDA of £300m to £305m in 2024/25, rising to between £305m and £320m in 2025/26, supported by ongoing cost-saving initiatives.

The Very Group chief finance and transformation officer Ben Fletcher said: “We committed to a timely and transparent refinancing of our existing debt, and I am delighted to be able to share this update. Extending the group’s financial maturities out until 2027 demonstrates the continued confidence of our partners in The Very Group.

“Our business is performing strongly as evidenced by our first half results, and today’s announcement allows us to focus on the continued delivery of our plan.”

Back in February, Very hailed a return to profitability thanks to “continued diligent cost control”, despite posting a drop in sales.

The online department store swung to a pre-tax profit of £6.1m in the 26 weeks to 28 December, up from a loss of £2m the year before.

Click here to sign up to Retail Gazette‘s free daily email newsletter