Nisa announces £120m refinancing deal

Symbol group Nisa has announced it has agreed a £120 million refinancing deal with HSBC and Wells Fargo.

The announcement comes within days of the leaking of a surprise bid from Sainsbury’s understood to be also worth £120 million.

The offer to buy the business was understood to be one of four being considered by a committee at the member-owned retailer.

Nisa and Sainsbury’s have not commented on the leaked deal, but local Nisa retailers told Neighbourhood Retailer they were sceptical the bid would be accepted.

Announcing the refinancing arrangement on Friday, Nisa said the deal followed several new contract wins and growth within the existing business. No reference was made to the approach by Sainsbury’s.

According to the Scunthorpe headquartered retailer, the deal provides “longer term, cheaper, and more flexible capital” for the business to invest in growth over the next three to five years.

Nick Read, CEO of Nisa Retail, said: “The retail market is quickly evolving and there is a real opportunity for the convenience sector to respond to the demands of today’s consumers. For Nisa, it is important that we continue to invest in the skills and capability of our business to support our member network, build a sustainable growth model and continue to deliver high standards of service.”

Robin Brown, CFO at Nisa added: “These new debt facilities provide a sound financial base, and the flexibility, from which to grow, and also demonstrate confidence in our business.”