KMD Brands has completed the refinance of its existing debt facilities, securing NZ$208 million in syndicated sustainability-linked multi-currency revolving facilities.
The new facility carries a term of up to 2.5 years, with NZ$43 million tranches maturing June 30, 2027 and providing the group with funding through to October 1, 2028.
KMD stated the refinanced facility, in combination with proceeds from its equity raising completed in April 2026, is expected to provide sufficient liquidity to fund working capital requirements as the group continues to execute its Next Level transformation strategy.
The company added that the facility provides operational flexibility as it works to reduce leverage over the longer term to a ratio of below 0.5x net debt to EBITDA. The new facility also continues KMD's existing sustainability-linked loan structure, with revised targets incorporating a pricing mechanism tied to the group's environmental, social and governance objectives.
The refinance follows a short-term extension to KMD's debt facilities secured in January 2026, after which the group reduced its total syndicated bank facilities by NZ$49 million to approximately NZ$283 million.
The equity raise and refinancing were announced simultaneously on March 31, 2026, with KMD’s now-former chairman, David Kirk, stating at the time that strengthening the balance sheet and securing a longer-term debt facility were critical to the group's continued execution of its Next Level strategy.
Kirk’s chair position was handed over to Philip Bowman earlier this year after he held the role for the last 12 years. Bowman thanked him for his service.
Kirk is set to step down from the board on July 1, with a commercial lawyer jumping in as a non-executive director.
The equity raise targeted approximately NZ$65.3 million, representing just over 1 billion new shares – or more than 150 per cent of shares then on issue. The group is now working to consolidate its shares at a 1 for 25 ratio – from 1,799,415,022 shares to approximately 71,976,601 shares.
At the time of the equity raise announcement, KMD reported net debt of NZ$94 million for the first half of FY26, above the NZ$85 million to NZ$90 million range the group had flagged in February.
The capital restructure follows a period of significant financial pressure for the group. KMD reported a net loss of NZ$93 million in FY25, alongside a cost reset programme targeting NZ$25 million in savings and the planned closure of 21 stores across the group.
The group has also been fielding unsolicited offers to break up the business, including one from US surfwear company Stokehouse Unlimited to demerge its Rip Curl business.
In its most recent trading update, KMD reported total first-half FY26 sales of NZ$505.4 million, up 7.3 per cent, with group CEO and managing director Brent Scrimshaw citing strong momentum at Kathmandu, which delivered double-digit same-store sales growth for the first time in more than two years.