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Asos PLC on Thursday announced plans to boost its balance sheet through a new long-term £275 million financing facility alongside a £75 million placing as it continues to restructure the business. The online fashion retailer said the new capital structure provides increased flexibility and simplicity under a single lender. Asos has entered into a £200 million senior term loan and a £75 million super senior revolving facility with specialist lender Bantry Bay Capital Ltd through to April 2026, which will replace the existing £350 million revolving credit facility which was due to expire in November 2024. The £75 million placing will be priced at 418.1 pence and there will be a separate retail offer of up to £5 million. Shares in ASOS closed 3.2% lower at 422.10 pence in London on Thursday. Back in October, Asos announced a turnaround plan. It said it would look to improve inventory management, reduce its costs and ‘reinforce’ its leadership team and culture. The plan was one of Jose Calamonte’s first acts as chief executive. But some City analysts felt a fundraise would be required to get the ball rolling. Analysts at Shore Capital said earlier in May: ‘Given the ongoing restructuring and cost savings initiatives, it is becoming increasingly evident that Asos will need to seek further capital infusion to support its long-term viability, in our view.’ ASOS said today’s move together with actions taken under its Driving Change agenda would ‘create a stable base for ASOS’ continued execution of its strategy and future return to growth.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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