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TRUWORTHS INTERNATIONAL LIMITED - Successful conclusion of UK debt restructuring

Release Date: 26/09/2019 15:30
Code(s): TRU     PDF:  
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Successful conclusion of UK debt restructuring

TRUWORTHS INTERNATIONAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/017491/06)
JSE Code: TRU; NSX Code: TRW
ISIN: ZAE000028296
("the company" or “the Group”)

SUCCESSFUL CONCLUSION OF UK DEBT RESTRUCTURING

Investors are referred to the SENS announcement dated 2 July 2019 in which the Group
advised that it had entered into discussions with the United Kingdom (“UK”) lenders to the
Office footwear retailing business regarding potential debt restructuring options. The
company further advised at the time of the release of its annual results on 15 August 2019
that negotiations had progressed constructively and that management believed that they
would be concluded satisfactorily.

The Group is pleased to advise that it has now successfully concluded an agreement with
its principal South African bankers, Standard Bank, to provide sterling denominated
funding that has enabled the Office business to be refinanced.

The board advises that the funding has been obtained on favourable commercial terms
based on the strength of the Group’s balance sheet, and is secured by a guarantee
furnished by the Truworths operations in South Africa.

The funding amount of GBP32.5 million, together with GBP10.5 million of the Office
business’ existing cash reserves that are surplus to operating requirements, have been
used to settle the Office business’ existing sterling denominated debt amounting to
GBP43 million. Negotiations with the UK lenders in this regard were concluded
successfully, and all transactions were implemented by 24 September 2019.

Trading conditions for retailers remain challenging in the UK as a result of dampened
consumer confidence and uncertainty ahead of the end-October 2019 Brexit deadline. The
board advises however, that management continues with the implementation of the
turnaround and alignment initiatives in the Office business and early indications are that
the business has been suitably stabilised.



26 September 2019

Sponsor in South Africa
One Capital

Sponsor in Namibia
Merchantec Capital

Date: 26/09/2019 03:30:00
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