New Look launches a £1.2bn bond issue
NEW LOOK is launching a bond issue totalling £1.2bn to restructure its debt and pay off its high-interest loans as it transitions to new owners.
The firm, recently sold to South African tycoon Christo Wiese for £780m, is issuing £1bn of senior secured notes due in 2022 and £200m of senior notes due in 2023.
The cash is being “primarily” used to pay down its £1.1bn debt, and “will not be used to finance the acquisition of the equity in New Look by [Wiese’s company] Brait”.
The proceeds are expected to be able to redeem the £500m-worth of 8.75 per cent secured senior notes as well as $250m (£163m) for 8.375 per cent senior secured notes and €175m (£129m) of floating rate senior secured notes.