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The Very Group Secures £150 Million Long‑term Debt Financing with Carlyle
•February 16, 2026
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Why It Matters
The extended, lower‑cost financing strengthens The Very Group’s balance sheet, enabling sustained investment in its e‑commerce platform while signaling lender confidence in its post‑Carlyle strategy.
Key Takeaways
- •Extended UK securitisation facility to Feb 2029
- •Renewed £150 m revolving credit line until Feb 2030
- •Coupon cut to 9.75% after deleveraging
- •Debt reduced £150 m with Carlyle capital support
- •Fitch and DBRS upgraded notes to AAA/A/AA ratings
Pulse Analysis
The Very Group’s latest financing package underscores a broader shift among UK retailers toward longer‑dated, lower‑cost debt structures. By pushing the maturities of its £1.77 billion securitisation facility to 2029 and securing a super‑senior revolving credit line through 2030, the company aligns its capital profile with a multi‑year growth horizon. This move follows Carlyle’s takeover, which has injected fresh equity and facilitated the deleveraging condition that triggered a coupon cut from 13.5% to 9.75%, directly improving earnings margins.
Rating agencies responded positively, with Fitch assigning AAA and A ratings to the A‑class notes and DBRS elevating the B‑class notes to AAA and AA. Such upgrades not only lower the cost of capital but also enhance the group’s credibility with institutional investors. The £150 million reduction in net debt, combined with the renewed credit facility, provides a robust liquidity cushion that can absorb seasonal demand spikes and fund technology upgrades without compromising financial discipline.
Strategically, the financing sets the stage for The Very Group to accelerate its digital transformation and expand its omnichannel proposition. With a stable funding base, the retailer can invest in data‑driven personalization, supply‑chain automation, and next‑generation customer experiences—areas that drove a modest 1.9% sales uplift during the holiday period. In a competitive e‑commerce landscape, the ability to fund growth initiatives at attractive rates positions The Very Group as a resilient player capable of capitalising on evolving consumer preferences.
Deal Summary
The Very Group extended its UK securitisation facility and renewed a £150 million super‑senior revolving credit facility, securing long‑term funding to 2029‑2030 with backing from Carlyle, its controlling shareholder. The deal reduces overall debt by £150 million and lowers coupon rates, positioning the retailer for growth.
Article
Source: The Retail Bulletin
The Very Group completes new long-term funding deal
by Angela Beevers
16 February 2026
The Very Group has successfully extended and renewed its key debt facilities in a move that its owners say positions the business for growth.
The news follows investment firm Carlyle becoming the group’s controlling shareholder late last year and the end of the Barclay family’s involvement in the business.
The long‑term funding has been secured to 2029 and beyond. All note classes within the group’s UK securitisation facility have been successfully extended, with maturities pushed out to 1 February 2029. Furthermore, the group’s £150 million super‑senior revolving credit facility has been renewed, with its maturity extended to February 2030.
The Very Group’s UK securitisation facility, which totals £1.77 billion, has now been operating for over 20 years. The group said Fitch has confirmed ratings of “AAA” and “A” for the A notes and “BBB” for the B notes, while DBRS uprated the notes “AAA” and “AA” respectively.
Following the fulfilment of the deleveraging condition set out in the terms of the group’s senior secured notes, the notes’ coupon rate has been lowered from 13.5 % to 9.75 % and maturity has been extended from August 2027 to August 2030. The group’s overall debt has been reduced by £150 million with Carlyle’s capital support.
Edward Fry, chief financial officer at The Very Group, said:
“Securing this long‑term funding reflects the confidence of our lenders in the strength of our business.
“The combination of extended maturities, improved margins and further deleveraging provides a stable platform for continued investment in our digital and customer proposition, while maintaining a disciplined approach to balance sheet management.
“The £150 million capital support from Carlyle is a reflection of their strong and ongoing support for the business. This leaves us in a robust financial position and well placed to support future growth.”
Last month, The Very Group reported “resilient” Christmas and Black Friday trading with sales up 1.9 % in the six weeks to 27 December.
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