Johannesburg - Edcon Holdings announced on Friday that it had received support from its bondholders and bank lenders to obtain R1.5 billion in bridge financing as South Africa’s biggest clothing retailer restructures its debt.
The company, owned by US private equity firm, Bain Capital Partners, this month asked holders of notes due in 2018 and 2019 to amend debt terms to allow for the new bridge financing in US dollars and euros.
Edcon chief executive Bernie Brookes said: “This financing has the consent of key majorities of our bondholders and bank lenders and has been provided by a group of those creditors, which means they are showing an acceptance for our advancing strategic restructuring initiatives, devised with the support of Bain Capital Private Equity, and a confidence in the future of the group.”
The bridge financing, which has been approved by the SA Reserve Bank, was to be made available in two tranches of up to R750 million each, Edcon said. The final part of the process was expected to be finalised in the near to medium term.
While Edcon would normally issue its annual results during June, the release of this year’s audited full-year results would be made following the finalisation of Edcon’s debt restructure, it said.
BUSINESS REPORT