The Very Group - comment

The Very Group has launched its Tender Offer for the £575m 2026 Bonds today. The initial view of the New Deal is that it is excessively complicated. There is a Draft Indenture and a draft Terms circulated by the Company. We understand the New Deal is preplaced, but we will examine the documentation and, subject to availability, may take a view on the new offering.

Bondholders will receive 100% plus interest if their tender is made before the Early Tender Date, May 29th. 

The New Senior Secured Notes, which are marginally bigger at £598m, will have an August 2027 maturity, with an option to extend the maturity to August 2030 upon satisfaction of a deleveraging Condition. The Deleveraging Condition includes a rating requirement of at least B3 and a Total Debt repayment of £150m. The coupon will be 13.25%, for which a maximum of 6.75% may be PIK. Additionally, the coupon may increase if ITRAXX exceeds 400 basis points. If the deleveraging Condition is met, the coupon reduces to 3yr Gilt + 6% (all cash pay), subject to a floor of 9.75%.