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BrightHouse announces £220m restructuring deal

BrightHouse has entered a £220m restructuring deal that will cut its external debt by half.


The rent-to-own company confirmed it has entered into an agreement with more than 90 percent of its existing noteholders and majority owner Vision Capital Funds, to refinance its existing senior secured notes.


Once implemented, BrightHouse’s external debt will be halved and its debt maturity extended by five years - the transaction is expected to complete by January 2018.


The agreement provides for the existing notes, due 2018, to be released and fully discharged in exchange for:

  • £107.2m of the new senior secured guaranteed notes, due May 2023, issued on a pro rata basis;
  • The existing shareholders that have agreed or agree to the deal before December 15 2017, a pro-rata share of around £4.5m payable in new notes as an ‘early bird consent fee’;
  • A cash payment or pro rata share of 97 percent of the BrightHouse’s new ordinary shares, with the remaining three percent to Vision Capital. The new ordinary shares are subject to a dilution of up to 10 percent for a management incentive programme.


Hamish Paton, chief executive of BrightHouse, said: “I’m pleased that we have reached this agreement which is an important milestone for the company.


“It follows the Financial Conduct Authority’s confirmation that they were minded to authorise our business subject to specific conditions, including a restructuring of our debt, being met. With a new capital structure, we can focus on delivering our agreed business plan and returning the company to growth.”


The transaction is subject to approval from both the Financial Conduct Authority and the Malta Financial Services Authority. BrightHouse offers product insurance cover from Caversham Insurance, based in Malta.

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