Co-operative Group re-financing

July 30, 2012

The Co-operative Group has successfully secured £950 million of new senior debt facilities to replace and enhance existing facilities that mature in 2013.  There is pre-agreed capacity to increase the facilities to £1billion.

The new finance package will enable the UK’s largest mutual organisation to continue to invest in and develop its growing family of trading businesses which includes the UK’s fifth largest food retailer, the largest funerals operator, the third largest pharmacy chain, and a newly authorised and expanding Legal Services business.  The wider Group, which includes banking and insurance, operates 4,800 outlets, employs more than 106,000 people and has an annual turnover of more than £13bn.

The Facilities were negotiated with a group of banks comprising Barclays Bank PLC, Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ), HSBC Bank plc, Lloyds TSB Bank plc and The Royal Bank of Scotland plc as joint mandated lead arrangers and bookrunners, The Co-operative Bank plc as joint mandated lead arranger, and The Governor and Company of Bank of Ireland as lead arranger.

Co-operative Group was advised by Reed Smith LLP and the bank group was advised by Linklaters LLP.