HMV nears refinancing deal with its lenders
EMBATTLED retailer HMV is close to securing a vital refinancing from its lenders, a source close to the company confirmed yesterday.
Months-long talks with HMV’s lending syndicate, led by Lloyds Banking Group and RBS, are close to yielding a two-year refinancing of between £210m and £230m, allowing the firm some breathing space to get its restructuring on track.
The company agreed to sell its Waterstone’s book chain to Russian tycoon Alexander Mamut last month, with the £53m proceeds helping to cut its debt pile.
The firm will put the sale to shareholders for approval and expects the deal to be finalised by the end of the month, around the time of results for the full year to the end of April.
HMV, which is approaching its 90th anniversary, has been ramping up sales of gaming and technology products to try and offset an industry-wide decline in CD sales. The company said in March that its underlying pre-tax profit for the year would be below market expectations of £45m.
A spokesperson for HMV declined to comment yesterday, while its banks did not return calls for comment.