The Very Group - comment

Carlyle has equitised £150m of subordinated debt, satisfying the deleveraging condition under the Group’s senior secured notes. As a result, the coupon on the HYB is reduced to 9.75% from 13.5% and maturity extended to February 2030. The transaction lowers the overall debt burden of The Very Group; it does not alter the underlying economics for Carlyle, which remains the sole equity holder. Alongside this transaction, the Group has extended its £1.77bn UK securitisation facility to February 2029 and renewed its £150m super-senior revolving credit facility to February 2030. The refinancing was anticipated, but its completion may indicate that Carlyle has so far been unable to exit the business on acceptable terms. The Group remains for sale, with JPMorgan and Barclays mandated to pursue a sale at a valuation of approximately £2bn.