Liverpool’s Very Group sells £575m bonds

Liverpool-based online retail and financial services group The Very Group, owned by the billionaire Barclay family, said on Tuesday it refinanced and extended its existing debt by selling £575 million of 6.50% senior secured notes due in 2026.

The company operates online retail brands Very.co.uk and Littlewoods.com.

The Very Group’s recent improvement in performance has led to speculation it will consider an initial public offering in the next year.

“The notes are rated B3 stable by Moody’s and attracted strong demand from investors, with an orderbook at the final pricing of over £950m,” said the The Very Group.

“The gross proceeds will be used, together with cash on balance sheet, to redeem in full the issuer’s £550 million aggregate principal amount of 7.75% senior secured notes due 2022 and to pay the costs fees and expenses incurred in connection with the transactions.”

The Very Group chief financial officer Ben Fletcher: “We are very pleased to have launched this bond, which refinances and extends our existing debt.

“The offer was significantly oversubscribed, and we are grateful for the continued support shown by our fixed income investor base.

“The demand shown is testament to our strong performance and resilient business model, which gives customers access to brands they love via flexible ways to pay.

“The group is well positioned to continue its strong trading trajectory and remains focused on its purpose of making ‘good things easily accessible to more people’.”

In October 2020, The Very Group said its revenue exceeded £2 billion for the first time in the year to June 30, 2020, and it returned to profit.

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