Superdry plc Announces Expansion and Increase of Secondary Lending Facility

Superdry plc disclosed a significant financial maneuver on 28 March 2024, revealing its decision to extend and bolster its secondary lending facility with Hilco Capital Limited. This strategic move is aimed at enhancing the company's liquidity, thereby supporting its ongoing turnaround efforts and cost-cutting initiatives.

The extension with Hilco provides a six-month increase to the facility's tenure until 7 February 2025, alongside an immediate funding boost of £10 million. An additional £10 million will be available for the company during the critical working capital peak period from September to November, contingent upon the successful implementation of cost-efficiency measures. The revised facility is described as covenant-light and carries an interest rate of 11.5% plus the Bank of England base rate on borrowed amounts, with borrowing limits pegged to a comparable asset baseline as existing agreements.

This financial reinforcement comes while maintaining the existing asset-backed lending arrangement with Bantry Bay Capital Limited, suggesting a multi-faceted approach to financial stability and growth support at Superdry.