TPG's Poundworld secures £50m debt package

Alice Murray
11 November 2015

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UK value retailer Poundworld, which was acquired by TPG earlier this year, has secured a ТЃ50m growth-focused debt package from Santander.

The funds will be used to support Poundworld's store roll-out plan, which aims to open 60 stores a year. It will also be used to invest in a new IT system as well as a 500,000-square-foot warehouse facility near its head office in Wakefield.

The facility was put together by Santander's Leeds-based corporate and structured finance team alongside the bank's international finance team to create a bespoke structure.

The transaction marks a continuation of Santander's support of Poundworld, with the bank previously providing the company with a £25m finance package in March 2014, which included a working capital revolving credit facility and a trade import loan facility.

Previous funding
TPG acquired a majority stake in Poundworld in May 2015, in a £150m all-equity deal.

Company
Poundworld's history goes back to 1974, when Chris Edwards began trading from a market stall in Wakefield Market in Yorkshire. The company was founded under its current name in 2004.

Poundworld is a Normanton-based single-price retailer, selling all items in its shops for £1. Since 2013, the company has also operated multi-price chain Bargain Buys.

The retailer employs 6,000 people and has around 280 locations across the UK, a total it intends to double in the next five years.

People
The Santander team was led by Paul Patkin, relationship director, Adrian Rowles, director of structured finance and Mark Lonsdale, international director. Christopher Edwards is the founder and CEO of Poundworld.

Advisers
Debt - Bond Dickinson, John Connor (Legal).