CEO Matt Moulding commits up to £60m as THG announces debt refinancing, equity raise
THG
35.02p
11:34 27/03/25
THG announced a debt refinancing and equity raise on Monday to support its "strategic growth targets" following the demerger of the Ingenuity business.
Personal Goods
12,724.77
11:30 27/03/25
In a statement released after the close, the ecommerce group said that founder and chief executive Matt Moulding has agreed to contribute up to £60m to the equity raise.
The refinancing will reduce the company’s overall debt and extend the term to 2029.
"THG announces a proposed refinancing to establish a long-term capital structure, in support of THG's strategic growth targets," the company said.
"This represents another significant step in THG's simplified debt and equity investment case as a cash generative global retailer and brand owner, well positioned to deliver on its next phase of development in its growing consumer markets."
As a result of the proposed refinancing, net total leverage would decrease from 3.2x to 2.6x based on continuing adjusted EBITDA of £92m in 2024, on a fundamentally more cash generative business, THG said.
THG shares ended down 7.3% at 34p.