9 April 2019
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS PRICE SENSITIVE INFORMATION
Update on Refinancing Discussions
Further to the announcement on 29 March, Debenhams plc (the "company") confirms that the relevant milestones relating to a potential transaction with Sports Direct International plc ("SDI"), which would have made available the second tranche of the new facilities detailed in that announcement, were not met by the relevant deadline.
The company is in discussions with its lenders regarding the availability of the remaining facilities that have not yet been drawn down. As announced on 29 March, and as a result of the milestones relating to a potential transaction with SDI not having been met, it is likely that these facilities will now only be available to the group's subsidiaries upon transfer of those subsidiaries into the ownership of a lender-approved entity. This outcome would ensure the stability and continuing trading of the group's operating subsidiaries, with no disruption to the group's business, customers, employees, pension holders, suppliers or operations. This outcome would result in no equity value for the company's current shareholders.
The Board confirms that it received a revised, highly-conditional, proposal from SDI in the early hours of 9 April, which indicated a willingness of Sports Direct to underwrite an equity issue of £200 million. The company's lenders have confirmed to the company that the proposal, on the terms set out, was not sufficient to justify an extension to the 8 April deadline.
The company anticipates making a further announcement during the course of the day following further discussions with its lenders.
Analysts and investors
Debenhams plc Katharine Wynne, Director of Investor Relations
020 3549 6304
Lazard (financial advisor) Marcus Taylor
020 7187 2319
Brunswick Group Craig Breheny/Fiona Micallef-Eynaud
020 7404 5959
A copy of this announcement will be made available on Debenhams's website at https://ir.debenhams.com/investor-overview
Lazard & Co., Limited ("Lazard") is authorised and regulated by the FCA in the United Kingdom. Lazard is acting as financial adviser to Debenhams plc and for no one else in connection with the matters set out in this announcement and will not be responsible to anyone other than Debenhams plc for providing the protections afforded to clients of Lazard, nor for providing advice in relation to the matters referred to in this announcement.
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