US owner Carlyle has pumped £150 million into online retailer Very as part of a refinancing deal.
The move comes as the private equity firm continues to seek a sale of the debt-laden Very Group.
Carlyle had been Very Group’s main corporate lender under previous owners the Barclay Brothers but seized control of the business last year.
Abu Dhabi-based media operation IMI, which led a failed move to buy The Telegraph newspaper group from the Barclays, also became a major lender as part of the deal.
Carlyle and IMI both took ownership of Very in November last year as the Barclays’ business empire collapsed, with the family currently facing bankruptcy petitions from lenders.
On Monday, Carlyle confirmed it had converted some of Very’s debts into equity, taking £150 million of capital in the company.
It was part of a wider deal which saw the retail business, which sells clothing, electricals, toys and other products, extend some of its loans.
Very said its UK securitisation facility was extended to February 2029 while a £150 million revolving credit facility was extended to 2030.
The firm said the refinancing deal “significantly strengthens the group’s capital structure and leaves the business well-positioned for the next stage of its growth”.
Edward Fry, chief financial officer at The Very Group, said: “Securing this long-term funding reflects the confidence of our lenders in the strength of our business.
“The combination of extended maturities, improved margins and further deleveraging provides a stable platform for continued investment in our digital and customer proposition while maintaining a disciplined approach to balance-sheet management.
“The £150 million capital support from Carlyle is a reflection of their strong and ongoing support for the business.”
