19 Jan OpCapita secures €25m debt facility

Grovepoint Capital and Hayfin Capital Management have provided a €25m debt facility to German-based retailer NKD (“NKD or “the Company”). Grovepoint and Hayfin jointly led and structured the debt financing, and Grovepoint acts as facility agent and security trustee for the lenders. The new financing will accelerate the growth and development of NKD and is an important step forward in the company’s strategic and operational turnaround under the ownership of OpCapita.

NKD, headquartered in Bindlach, Bavaria, is a discount fashion retailer, operating from 1,373 stores in Germany with a further 430 stores across Austria, Italy, Croatia and Slovenia. The business has a strong presence in smaller towns as well as on the high street and in shopping centres.

NKD was acquired by OpCapita, the European private equity firm, in November 2013. Since acquisition, OpCapita has carried out an intensive turnaround programme overseen by OpCapita operating partner, John von Spreckelsen, focused on returning the company to its core strengths. It has strengthened the management team, improved product quality levels in partnership with key suppliers, overhauled the customer communication strategy and point of sale marketing, and improved retail operations in the company’s store base. As a result of the change programme, NKD is experiencing like-for-like sales growth in a declining market, and OpCapita has returned a previously loss-making business to a break-even EBITDA level, through improved gross margins and good cost discipline.

NKD was advised by Alvarez & Marsal and Kirkland & Ellis. Grovepoint and Hayfin were advised by Mayer Brown.

John von Spreckelsen, OpCapita Operating Partner, said: “We are very pleased with the progress of NKD during our first year of ownership. The business has a stable financial position and this financing will give us further flexibility to develop and grow the business going forward as part of our ongoing operational change programme.”