The British department store Debenhams launched a £225m bond issue yesterday in a bid to refinance its debts and diversify its funding sources, it has been reported.
The decision followed a slow year for Debenhams, which in December issued its second profit warning in the same 12 month period. The retailer had initially planned to raise £200m, but the offering was well-subscribed, according to Chief Executive Michael Sharp, and an extra £25m of 5.25% yield senior notes were also sold, due in 2021. The move means that Debenhams can now extend its bank facilities to 2018 in the form of a £425m loan.
“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,” said Sharp.
Lazard advised Debenhams on the deal, whilst Lloyds Bank and Royal Bank of Scotland acted as joint bookrunners and global co-ordinators for the scheme.
A total of US$4.88 trillion of debt has been sold so far this year reports Dealogic, close to the level of 2007 when US$4.91 trillion of bonds were issued over the same period.
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