The ecommerce company has completed debt refinancing through to December 2029.
The proposed refinancing means that net total leverage (excluding leases) for the business will decrease from 3.2x to 2.2x pre-deal fees based on its FY2024 adjusted EBITDA of £92m.
That EBITDA figure excludes its technology platform division Ingenuity, which it announced it would be demerging from the wider business in October.
It comes following news that Frasers Group was upping its stake to 10.9%, up from 6.1%. The Sports Direct and House of Fraser owner contributed £10m in funds towards the spin-off of Ingenuity.
THG owner Matthew Moulding recently announced he was contributing £60m of his own funds towards the company as part of the refinancing package.
The refinancing extends the maturing of the company’s existing revolving credit facility from May 2026 to May 2029.
“THG is a fundamentally cash-generative business and the refinancing underlines the Company’s target to progress towards a neutral net cash / net debt position,” it said in the statement announcing the completion of the package.
EBITDA for THG Beauty in 2023 was £44.2m on sales of £1.2bn, while EBITDA for THG Nutrition was £88.9m on revenue of £657.9m.
THG Beauty operates sites including LOOKFANTASTIC, Cult Beauty and Dermstore, while THG Nutrition operates the MyProtein brand.
The company added that it would add more details of FY2024 performance in its results on April 30.
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