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LONDON - THG PLC, a global retailer and brand owner, has unveiled a plan for a significant debt refinancing and equity raise aimed at supporting the company’s strategic growth objectives. The move follows the successful completion of the Ingenuity demerger and THG’s subsequent entry into the FTSE 250 index.
The proposed refinancing includes extending the maturity of €475 million of its EUR Term Loan B to December 2029, repaying a £109 million GBP Term Loan A, and the remainder of the EUR Term Loan B through a mix of existing cash and a new equity contribution of at least £60 million, with THG founder and CEO Matthew Moulding committing up to £60 million. Additionally, the maturity of an existing £150 million Revolving Credit Facility will be extended to May 2029.
This refinancing strategy is expected to reduce THG’s net total leverage from 3.2x to 2.6x, based on the company’s continuing Adjusted EBITDA of £92 million in 2024. The company’s cash generation is anticipated to be more robust as a result of this restructuring.
The equity portion of the funding will be raised through a combination of an accelerated bookbuild placing and direct subscriptions, potentially issuing up to 91.86 million new ordinary shares, equivalent to approximately £31.2 million based on THG’s closing share price as of March 24, 2025. The equity placing will be open to eligible shareholders and long-term supporters of the company. If institutional investors are allocated shares, Moulding’s subscription will be scaled back.
Moulding’s investment could also include a non-interest bearing convertible loan that could raise up to £54.6 million, which may be adjusted based on investor demand from the equity placing. He is also expected to pay up partly paid shares totaling approximately £5.35 million.
Following the demerger of Ingenuity, THG now focuses on its THG Beauty and THG Nutrition businesses. The company reported robust financial performance for FY 2024, with continuing revenue of £1.7 billion and a projected continuing Adjusted EBITDA of £92 million.
The equity placing is part of a broader refinancing exercise intended to raise at least £60 million. Admission of the new ordinary shares is expected to occur on March 27, 2025. Barclays (LON:BARC) Bank PLC is acting as the global coordinator and bookrunner for the accelerated bookbuild.
The proposed refinancing and equity raise are subject to various conditions, including shareholder approvals and market conditions. The move is seen as a strategic effort by THG to position itself for long-term growth and improved financial stability.
This announcement is based on a press release statement and contains inside information.
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