UK carpet maker Victoria Plc has successfully secured support from holders representing over 75% of its $166.6 million 3.75% senior secured notes due in March 2028, paving the way for its debt restructuring. This threshold is critical for implementing the refinancing through a scheme of arrangement under Part 26 of the Companies Act 2006. The deal aims to cut Victoria’s debt load by about $403 million.
Initially, HSBC Holdings Plc, a significant bondholder, had resisted the refinancing deal, facing opposition to the agreement unveiled earlier in July. However, HSBC has now signed onto the transaction. The restructuring involves swapping the outstanding 2028 notes for new 2031 second-priority notes, effectively extending the maturity by three years. This move provides Victoria with a prolonged window to execute operational improvements, realize cost savings, and deleverage its balance sheet.
Geoff Wilding, Executive Chairman of Victoria Plc, expressed satisfaction with the overwhelming support received from the 2028 bondholders, noting that it secures a clear path to implementation. He affirmed the company's commitment to completing the refinancing swiftly while continuing to focus on operational enhancements and the deleveraging initiatives outlined in 2026. This bondholder backing, combined with other strategic moves like a sale-leaseback of a Belgian distribution center, shifts the company from immediate refinancing pressure to a more stable three-year period for revitalization.
