BGN Entrepreneur

Debenhams just confirmed that it had raise £323 million by selling new shares in a move aimed at slashing its £940 million debt mountain. UK’s second-biggest department store operator, after John Lewis, sold 404 million new shares, which is about 31.4% of the enlarged company.
The move would enable debts to be cut significantly and leave a war chest big enough to permit acuisitions. As part of the move, Debenhams also renegotiated its lending covenants. The fundraising also enable the lending agreements underpinning its existing borrowings to be renegotiated. After the fundraising Debenhams will repay £50 million worth of borrowings at once. The remaining £250 million or so of money raised will sit on its balance sheet.
Debenhams also updated the market on recent trading, reporting that, in the 12 weeks to May 23, like-for-like sales were down by 0.8% on last year but that total sales were up by 3%.

Related posts:

1. Debenhams Sales Take Battering
   The department store chain—Debenhams, did little to comfort the retail...
2. Debenhams Dividend
   Debenhams plans to recommence dividenc payment this year as it...
3. Meggitt Raises $600m of Debt
   Meggitt, the defence equipment supplier, has raised $600 million in...
4. M&S Final Pension Fund Plans
   Marks and Spencer has announced plans to pump a total...
5. Telephone Tax to Fund Britain’s Digital Future
   Households and business will have to pay a £6-a-year tax...