Having announced its intention to raise funding of £150m to address increased PPI claims liability, Shop Direct’s parent shareholder, SDHL, has secured committed funding for up to the full amount sought, which is now available for onward investment into Shop Direct.
The group reports that while it has no immediate need for funding, £75m will be invested in the business by way of equity injection from SDHL into Shop Direct. This is due to occur before the end of November.
The remaining £75m is fully committed to SDHL and will be available to the group for subsequent drawing in accordance with its liquidity requirements. The group continues to work with its financial advisers to evaluate alternative financing options for the £75m that will initially remain undrawn. The group has no near-term liquidity requirements and is keen to ensure that it has fully explored its financing alternatives to ensure the best terms are achieved.
The group says it also received an offer on agreed terms that would enable up to £100m of new notes to be issued under its existing receivables securitisation programme.