DFS in ‘advanced stages’ of financing discussions as it mulls equity raise

DFS store fascia Bromley side view

DFS has said it is in “advanced stages” of negotiation with lenders over additional financing and is mulling the possibility of an equity raise as it battles to ride out the coronavirus storm.

In a note issued to the City this morning, DFS confirmed it was close to agreeing a deal with is lending banks to extend its existing £250m facility by an additional £60m to £70m.

Alongside extending its debt facility, DFS said it was preparing for a “possible non pre-emptive” equity issue of up to 19.9% of its existing capital.

The retailer said such a move would further strengthen its balance sheet and provide “resilience for a continued disrupted trading environment”.

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