Arini Capital Management has extended a £130m ($179m) credit facility to British carpet manufacturer Victoria Plc to help manage its imminent debt maturities, according to a report by Bloomberg citing unnamed sources familiar with the deal.
The new loan replaces Victoria’s existing super senior revolving credit facility due in February and was fully provided by Arini, a credit fund founded by Hamza Lemssouguer. The facility carries an interest margin of 600 basis points over the Sterling Overnight Indexed Average (SONIA) and was issued at 99 pence on the pound. The margin is set to decrease if Victoria achieves lower leverage targets.
Victoria has faced mounting refinancing pressure amid downgrades by credit rating agencies, with S&P Global recently cutting its long-term issuer rating to CCC+ from B-, reflecting concerns over the company’s significant debt maturities within the next 18 months and limited capital market access.
Arini’s loan ranks senior to Victoria’s €500m ($590m) bonds maturing in August 2026 and €250m notes due in 2028. Discussions regarding the treatment of these bonds remain ongoing and are reportedly progressing well.
Victoria’s bond prices have diverged sharply: 2026 maturities trade near 95% of par, while the 2028 notes have dropped to roughly 40 cents on the euro following the loan announcement.
Distressed debt investor Redwood Capital Management has accumulated a large position in Victoria’s debt and explored subordinating other bondholders, while multiple private credit firms have expressed interest in the company, according to Bloomberg.
