ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

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.

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group