Matalan - Smaller financing package

All,

The proposed terms Matalan are soliciting consent for sound like a great deal for the SSNs.

However, we do note that the transaction is smaller (and likely cheaper) than what we had in mind and that we are still lacking detail. 

Thus we are surprised to see that the proposal is only discussed with 33% of the SSNs.

Subject to further detail - which we will acquire - we would be inclined to provide our consent.

Terms involve:

Liquidity + £50m only:

- Tap of the Existing RCF from £50m to £75m via a £25m CLBILS facility.

- Issuance of New Priority Notes for £25m senior to the SSNs.

- Equity Commitment Letter from the family over £25m if by year end the RCF and CLBILS facility have not been reduced under £50m.

Interest:

- The 2ln Notes via a SoA to go PIK-Toggle.

- Hargreaves to subordinate and term out his £50m stake in the 2lns.

- Potential further reduction if shareholder is to contribute fresh equity by year-end in cash.

Wolfgang