British clothing retailer Asos Plc announced measures to improve its financial position on Thursday. New loans and a capital increase should therefore “ensure financial flexibility” and create a “solid basis” for the implementation of the strategy and the return to the growth course. The company was recently in the red and initiated a comprehensive reform program.
Accordingly, the group agreed new loans totaling 275 million British pounds (317 million euros) with the financial company Bantry Bay Capital Limited. The loans, which mature in April 2026, replace the previous £350 million revolving credit facility, which would have expired in November next year, Asos said.
At the same time, the company relies on a capital increase. Asos announced that new shares worth a total of around 80 million British pounds (92 million euros) would be placed as part of this. The group’s two largest shareholders, Aktienelskabet Af 5.5.2010 and Camelot Capital Partners, have made a binding commitment to acquire a significant portion of the approximately 18 million new shares.
On Friday, the company announced that Aktienelskabet had already secured around five million shares and Camelot Capital Partners around 3.9 million shares. Asos estimated the expected gross proceeds from these transactions at around £37 million.