Victoria shares jump as refinancing reduces debt by GBP300 million
Victoria PLC shares jumped on Wednesday after it agreed a "comprehensive" refinancing which reduces debt and eliminates near-term equity dilution risk.
Shares in Victoria jumped 26% to 73.10 pence on Wednesday afternoon in London.
The Worcester, England-based designer, manufacturer and distributor of flooring products said it has agreed a binding transaction support agreement with KED Victoria Holdings LLC, Wood River Capital LLC, and holders representing around two-thirds of its outstanding EUR166.6 million 3.75% senior secured notes due March 2028.
Victoria said the parties have agreed to a refinancing of the 2028 senior secured notes and KED Victoria's holding of preferred shares to "significantly strengthen" its financial position.
The company said the deal will reduce senior secured debt and preferred shares liabilities by at least £300 million, and eliminate near-term equity dilution risk from KED Victoria's preferred shares.
Victoria added that the refinancing will cut annual finance costs including the preferred shares payment-in-kind dividend by around £34 million.
The refinancing extends debt maturities through the issue of new 2031 notes.
Victoria said trading since the start of the year has been "encouraging" with on-year revenue growth.
The firm added: "In particular, this has been driven by the execution of management's performance initiatives and ongoing market share gains in the UK and Australia. Across the business, management reacted quickly to the disruption caused by the Iran conflict, executing targeted price rises to protect margins and effectively managing the supply chain to mitigate negative impacts."
Victoria said earnings before interest, tax, depreciation and amortisation performance was "broadly in line" with guidance in financial 2026, notwithstanding the Iran conflict.
Executive Chair Geoff Wilding said: "This refinancing transaction is a significant step forward for Victoria and, in particular, for ordinary shareholders. Together with the successful extension of our 2026 note maturities last year, it materially improves Victoria's financial position and provides runway for our ongoing operational recovery."
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