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BRAIT SE - Announcement of the completion of New Looks balance sheet restructuring

Release Date: 03/05/2019 17:30
Code(s): BAT     PDF:  
Wrap Text
Announcement of the completion of New Look’s balance sheet restructuring

Brait SE
(Registered in Malta as a European Company)
(Registration No. SE1)
Share code: BAT ISIN: LU0011857645
Bond code: WKN: A1Z6XC ISIN: XS1292954812
LEI: 549300VB8GBX4UO7WG59
("Brait")

ANNOUNCEMENT OF THE COMPLETION OF NEW LOOK’S BALANCE SHEET
RESTRUCTURING

Further to the announcements released on 14 January 2019 and 30
January 2019 on the website of the Luxembourg Stock Exchange
(“LuxSE”) and on the Johannesburg Stock Exchange (“JSE”),
shareholders in Brait are advised that the portfolio company New
Look has today announced the completion of the balance sheet
restructuring transaction which has led to a deleveraging and
strengthening of New Look’s balance sheet (the “Transaction”).

In summary:

•   New Look’s long-term debt has been significantly reduced from
    GBP1,350 million to GBP350 million, comprising (i) the existing
    GBP100 million Revolving Credit Facility reinstated at par and
    (ii) GBP250 million of reinstated SSNs.
•   New Look has further received GBP150 million of new money (the
    “New Money Bonds”) that has been used to refinance the Bridge
    Facility and provide New Look with additional liquidity to
    support the business in a sustainable manner and cover
    transaction costs, resulting in total new SSNs in issue of
    GBP400m.
•   The Transaction provides New Look with a more flexible capital
    structure, significantly lowering its overall annual cash
    interest payment from GBP80 million to c.GBP40 million with
    greater debt servicing flexibility.
•   The new SSNs maturity will be extended to 2024, reducing
    refinance risk.


Effect of the New Look restructuring on Brait:

The effect of the completion of the Transaction, effective 3 May
2019, on Brait is in line with the ranges previously guided:

•   Brait’s equity holding in New Look post the Transaction is 18.5%.
    Brait remains the largest shareholder in New Look.
•   Brait will have advanced a net GBP10 million pursuant to the
    Transaction, being GBP28 million of funding for New Money Bonds
    offset by the receipt of around GBP18 million representing (i)
    the debtor factoring finance that Brait has with New Look and
    (ii) restructuring fees.
•   As a result of the Transaction, Brait’s 18% holding of the
    existing SSNs has been exchanged into GBP45 million of reinstated
    SSNs, and together with the New Money Bonds of GBP28 million
    subscribed for by Brait, giving Brait an aggregate holding of new
    SSNs of GBP73 million at issue price, which together with its
    18.5% equity holding, held at nominal par value, are the only
    investments now held by Brait relating to New Look.


Malta

3 May 2019

Brait's primary listing is on the Euro MTF market of the LuxSE and
its secondary listing is on the JSE.

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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