EDCON LIMITED - Edcon reduces debt by R4.5 billion, reduces cash pay interest by over R1 billion annually, extends maturities

Edcon reduces debt by R4.5 billion, reduces cash pay interest by over R1 billion annually, extends maturities

Edcon Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2007/003525/06)
Company code: BIEDC1
ISIN: ZAG000085168
(“Edcon”)


Edcon reduces debt by R4.5 billion, reduces cash pay interest by over R1 billion annually and
extends maturities by 2 years with unanimous bank support

Johannesburg, South Africa, November 30, 2015: Edcon Group (the “Group”) has successfully
reached an agreement with all of its bank lenders to extend the maturity of over R7.9 billion of bank
debt. In addition, the Group has secured new commitments for a facility of R1.85 billion to refinance
the entirety of its obligations under the existing R1.0 billion secured notes due 2016 and the R1.0
billion liquidity facility. As a result, none of Edcon’s material debt obligations will mature for at least
two years.

Edcon Group has also concluded the final stage of the exchange offer launched in June this year in
respect of its secured notes due 2019. The total deleveraging effect on the business of the
combined transactions will be circa R4.5 billion, including a decrease in cash-pay leverage of
approximately 25%. The deal represents a strong statement of support from Edcon Group’s existing
South African and international lenders under its revolving and term loan facilities, as well as new
lenders into the capital structure.

As part of the agreement, Edcon gained the support of its broad lender group for the Group’s
continuing operational improvement by revising its financial covenants to increase headroom. In
addition, the transactions will secure a reduction in Edcon Group’s annual net cash interest
payments by approximately R1.0 billion.

Edcon Group anticipates that the increased headroom and cash made available as a result of the
deal will allow it to embark confidently on the customer-centric turnaround strategy proposed by its
CEO, Bernie Brookes, in order to continue delivering positive EBITDA growth.

Edcon CEO, Bernie Brookes commented:

“Our lenders have recognised the potential for Edcon to continue to grow profitably, having recently
announced our fifth consecutive quarter of EBITDA growth. With this long-term financing in place, we
can focus on our customers and returning Edcon to its preeminent position in the market.”
                                                                     
Ends

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2003/71/EC.

This press release includes forward-looking statements within the meaning of the securities laws of certain applicable jurisdictions. By
their nature, the forward-looking events described in this press release may not be accurate or occur at all. Accordingly, you should not
place undue reliance on these forward-looking statements, which speak only as of the date on which the statements were made.


30 November 2015

Debt Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)

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