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Carpetright Says In Takeover Talks With Meditor - Quick Facts

Carpet and floor coverings retailer Carpetright Plc. (CPR.L) said Thursday that having explored the viability of various long-term financing solutions to repay its debt facilities, it is in talks with Meditor on a possible offer by Meditor to acquire all of the issued and to be issued shares of Carpetright. The offer is expected to be by way of a scheme of arrangement.

The company also said its board believes Carpetright is performing well despite the challenging economic backdrop and intense sector competition. According to the company, Group profitability is improving as the company drives store efficiency and reduces the central cost base.

Carpetright believes it requires about 80 million pounds to repay the debt facilities, meet its ongoing working capital requirements; and provide the company with the necessary growth capital to execute its strategy.

Carpetright noted that Meditor has indicated its possible offer would be at 5 pence per share, paid in cash. If the possible offer is made and on the scheme of arrangement becoming effective, the company expects Meditor will convert the majority of the outstanding debt under its debt facilities into equity and also provide it with additional capital.

Carpetright noted that its revolving credit facility purchased by Meditor European Master Fund Limited on 3 September 2019, is due to expire on 31 December 2019. The Company's overdraft facilities provided by NatWest and Ulster Bank but funded by Meditor, are also due to expire on 31 December 2019.

The unsecured loan provided Carpetright by Meditor on 11 May 2018 is due for repayment on 31 July 2020 at a value of 25.7 million pounds. The company's statutory net debt as at 26 October 2019 was about 27 million pounds.

In line with normal seasonal trends, the company expects its statutory net debt to increase to between approximately 40 million pounds to 50 million pounds in December 2019, and gross debt to rise commensurately.

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