International law firm Reed Smith has advised (new client) the Co-operative Group on the successful completion of its debt refinancing. The new financing arrangements provide for term and revolving credit facilities in an amount of up to £950 million, with pre-agreed capacity to increase to £1 billion.

The new finance package will enable the Co-operative Group to continue developing its trading operation, which controls more than 4,800 retail trading outlets, employs more than 106,000 people and has an annual turnover of more than £13bn.

The refinancing was completed with a group of banks comprising Barclays Bank PLC, Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ), HSBC Bank plc, Lloyds TSB Bank plc and The Royal Bank of Scotland plc (as joint mandated lead arrangers and bookrunners), The Co-operative Bank plc (as joint mandated lead arranger) and the Governor and Company of Bank of Ireland as lead arranger. The bank group was advised by Linklaters.

Reed Smith’s London Banking & Finance team was led by Phil Slater and included partner Lucy Newcomb and associates Nick Williams, Ben Wulwik and Anita Gin. Partner Caspar Fox advised on tax aspects.

Linklaters team was led by Jeremy Stokeld and included associates Shirley Chung and Daniel Bhalla.

Phil Slater, Reed Smith’s lead partner on the transaction commented:

“It’s fantastic to have been selected by the Co-operative Group to act on this significant refinancing and I am delighted it has completed successfully. This represents a great follow up to the banking work Lucy and I undertook for the Co-op in 2008 at the time of the Somerfield Acquisition.”

ENDS

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