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:
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.