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Transaction Announcement

20 September 2016

On 20 September, 2016, certain entities in the Edcon Group and certain of the Edcon Group’s creditors, accounting for 80% of the outstanding principal amount of the secured debt of the Edcon Group, provided signatures in respect of a lock-up agreement (the “LUA”), pursuant to which the parties to the LUA will agree to the key terms of a comprehensive restructuring of the Edcon Group’s entire capital structure (the “Restructuring”), including a significant decrease in the outstanding amount of third-party debt of Edcon Limited (“Edcon”) and a transfer of control over the Edcon Group’s operating companies from Bain Capital to certain of the Edcon Group’s existing creditors (the “Control Transfer”). The LUA is expected to become binding shortly, subject to the satisfaction to certain conditions precedent.
The Edcon Group’s Chief Executive, Bernie Brookes, commented, “This important milestone in the history of the Edcon Group follows the recent payment deferral implemented in May 2016 and the securing of R1.5 billion of bridge financing under new Facilities A1 and A3 of the existing Super Senior Liquidity Facility Agreement. These all indicate the significant support we are receiving from our creditor base to ensure that we have a strong, robust and re-energised Edcon going forward. Our operational turnaround plans are already well underway and the finalisation of the process to reduce our debt will ensure Edcon remains the largest South African clothing retailer, but that it also returns to its former status as the leading clothing retailer in South Africa”.

Download: transaction__announcement_20160920.pdf


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