27th Aug 2019 09:21
(Alliance News) - Carpetright PLC said Tuesday its major shareholder Meditor European Master Fund Ltd agreed to purchase the lending facilities of the carpet retailer and intends to secure long-term funding for the firm.
Shares in Carpetright were 11% higher at 14.93 pence in London on Tuesday.
Meditor - which held a 30% stake in Carpetright as of late May - agreed to buy the GBP40.7 million revolving credit facility from the current providers, NatWest and AIB, whilst also retaining the current terms of the facility.
In addition, Meditor has agreed to provide funding to NatWest and Ulster Bank for the current GBP6.5 million overdraft facilities currently provided by the two lenders.
Carpetright emphasised that the participation of Meditor in the facilities held by the firm were at an "arms-length" to the company. Consequently, Meditor did not seek any assurances from Carpetright and did not propose any board representation or structural changes at the company.
"Meditor has confirmed it now intends to engage with the company with a view to providing a more stable and longer-term funding platform," Carpetright said.
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