Fashion retail group Mosaic Brands has completed the refinancing of an expiring $43 million facility from Commonwealth Bank (CBA) with restructuring firm Hilco Capital.
This is part of the group’s plans to address its debt maturity. The refinancing package with Hilco Capital will replace the current facility and extend it through to 2026.
The group, which manages several Australian apparel brands such as Rivers, Noni B and Millers, reported two months ago that it had access to a $43 million finance facility with CBA which ends in August 2024.
The current terms of the facility include a ‘Trade Finance Facility’ of $19 million, a ‘Working Capital Facility’ of $20 million and a ‘Guarantee and credit facility’ of $4 million.
On December 28 last year, Mosaic Brands entered into an agreement to purchase EziBuy which was then undergoing liquidation. The purchase included a paydown of the current bank facility between the group and CBA of $6 million.
According to the EziBuy website and its profile on the Australian Securities and Investment Commission, the EziBuy business has returned to trading.
In its half-year trading update two months ago, Mosaic Brands told shareholders the new refinancing package with Hilco Capital “will bring Mosaic in line with other major retailers that will provide greater operational flexibility.”