Matalan - New Issue Comment
Full refinancing of the capital structure
Matalan is marketing £480m of new bonds in order to refinance its whole debt structure. Proceeds from the new NC2 £330m 1st lien secured notes due 2023 (B-/B2 by S&P/Moody’s), along with new NC3 £150m 2nd lien secured notes due 2024 (CCC/Caa2) and cash in hand, will be used to call all of the existing £342m 1st lien due June
2019 and £150m 2nd lien bonds due June 2020. The bonds will be redeemed on 25 January at their respective call price of 101.719 and 104.438. The existing £50m super senior RCF (undrawn) is also replaced by a similar facility maturing in 2022. These transactions will greatly improve the debt maturity profile and reduce liquidity risk. Pro forma net leverage, including £6m of management’s add-back to EBITDA, is broadly unchanged at a manageable 3.8x as of the end of November 2017 (5.5x adjusting for operating leases).
Spread Research is France's first Rating Agency, registered by ESMA (European Securities and Markets Authority) and a leading European Independent Credit Research firm, founded in 2004 and based in Lyon, France. Our experienced team offer key research services using a wide range of investment strategies and research methodologies for the High Yield, Emerging Markets, Convertibles and Loan Markets.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.