WHSmith completes refinancing ahead of high street store sale plans

WHSmith has secured £320m from US investors and through a new bank loan, as part of its strategy to expand its global travel retail business and explore options for its UK high street stores.

The company today confirmed the successful completion of a £200m US Private Placement (USPP) note issue and a £120m bank term loan.

These USPP notes mark WHSmith’s first-ever move into the US market, with maturities of seven, ten, and twelve years, issued on investment grade terms.

Alongside the USPP notes, the retailer has agreed a £120m three-year bank loan with two optional one-year extensions, which, subject to lender approval, could extend the loan term to four or five years.

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Group chief financial officer Max Izzard said: “This refinancing strengthens our balance sheet, extends our debt maturity profile, and diversifies our capital structure. It also opens the door to future access to new debt investor bases, and we’re grateful for the continued support from our banking partners.”

The company said this move will diversify WHSmith’s sources of debt financing and extend its debt maturity profile ahead of a convertible bond maturity in May 2026.

Earlier this year, the retailer confirmed it was exploring potential options for its UK high street stores, including a possible sale. The high street outlets remain a profitable part of the business but are increasingly becoming less aligned with the group’s focus on its growing global travel retail division.

Over the past decade, WHSmith has successfully transformed into a leading global travel retailer, with more than 1,200 stores in 32 countries. The travel division now accounts for three-quarters of the company’s revenue and 85% of its trading profit.

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