B&M reveals plans to secure £250m boost
Discount retailer B&M has revealed plans to secure a financial boost of £250m.
The Liverpool-headquartered company, which is listed on the London Stock Exchange, intends to offer senior secured notes which would be due in 2028.
A senior note is a type of corporate bond and would be paid before a junior note if a company enters bankruptcy. Senior notes are typically unsecured debt and they aren’t secured by collateral.
In a statement, B&M said it intends to use the gross proceeds for “general corporate purposes” and to pay fees and expenses incurred in connection with the offering of the notes.
Never Miss a Retail Update!Last week it reported a total group revenue of £2.268bn for the six months to September 25, 2021, up from £2.242bn. B&M UK’s sales increased from £1.885bn to £1.909bn while Heron Foods’ slipped from £216.2m to £203.1m.
The group’s French sales rose by more than 10% from £140.6m to £155.4m.
B&M has also reported group pre-tax profits of £241.3m, up from £235.6m.
The group added that it faced “more challenging trading conditions” in Heron Foods as average transaction values for grocery shopping normalise to pre-pandemic levels, but it also said there had been “satisfactory earnings through careful cost control and cash discipline”.
