Matalan - comment

A group of its main shareholders consisting of Invesco, Tresidor, Man Group and Napier Park is injecting an incremental £25m fungible with the existing Super Sr. Notes. This was flagged and publicly discussed already on the Q3 call. All credit docs have been amended to reflect the additional borrowing headroom from £20m of EBITDA to £60m and the Super Sr. Notes together with the Priority Notes have been extended by five months to Dec. 27 - still one year before the SSNs. Matalan has dealt with most of the cost inflation it faced in line with the UK overall and is now in a better place to rebuild its margins. Q424 EBITDA was a little stronger than expected.