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The £97m loan, which is scheduled for repayment in August next year, forms part of a £222m debt refinancing package revealed in October, when Boohoo began a comprehensive business review after the exit of CEO Dan Finley’s predecessor, John Lyttle.
In a statement to the stock exchange, Dan Finley said: "Following the conclusion of the recently announced oversubscribed placing we are today pleased to announce the repayment of £50m of our term loan.
“The repayment will be made with funds raised from the placing and through the Group's initiative to reduce stock levels as we become a leaner and lighter business, focused on maximising value for all our shareholders. The board would like to thank our banking syndicate for their continued support."
Last week, it was announced that Carol Kane, co-founder and executive director of Boohoo Group, acquired 294,350 ordinary shares in the company at a price of 33.888 pence per share. This transaction boosted her stake to approximately 1.45% of the firm's total issued shares.
Prior to this, the retailer listed 126,908,442 new ordinary shares on AIM, bringing its total voting rights to 1.39 billion shares.
Additionally, Boohoo co-founder and substantial shareholder Mahmud Kamani increased his ownership by acquiring over 16 million shares, raising his stake to 12.50% of the company's issued share capital. This move comes after a successful fundraising round, which was oversubscribed, demonstrating significant investor demand for the online fashion retailer.
A report from The Times said that Kamani invested £15.3m into the company to support recovery efforts. This investment includes contributions of £5.1m from Mahmud Kamani, £1m from his sister Rabia Kamani, £6.2m from his son Samir Kamani, who is also the CEO of BoohooMan, and £3m from his other son Umar Kamani, co-founder of PrettyLittleThing.
Headquartered in Manchester, Boohoo generated £39.3m through a mix of placing, subscription, and retail offer activities. Despite targeting £6m through a retail offer, the company succeeded in raising only £400,000.
Commenting on the development, Pippa Stephens, apparel analyst at GlobalData said: "The repayment of £50m of its loan is a positive step in boohoo's journey to becoming a lighter business. However, it still has a long way to go to turn itself around, having reported significant revenue declines in its recent H1 results. Its youth brands of PrettyLittleThing, boohoo and boohooMAN are particularly burdensome, hindered by the extraordinary rise of players like Shein and Temu, with this heightened competition significantly weighing on the business' performance."