Case Study

DFS Furniture diversifies funding sources and increases liquidity

DFS Furniture Plc, headquartered in Doncaster, is the UK’s leading retailer of upholstered furniture, operating over 170 stores nationwide across its DFS and Sofology brands.

DFS Furniture
At a Glance Meet the Team

At a Glance

Founded in 1969, DFS designs, manufactures, sells, and delivers a wide range of products including sofas, armchairs and recliners. The PGIM team has maintained a regular direct calling relationship with DFS since early 2020. Our ability to offer longer-term, fixed-rate capital was attractive to DFS as a way to diversify the Company’s funding sources and increase liquidity, alongside the existing bank facility. As part of a wider refinancing process in 2023, we provided £50 million of private placement debt, split across 5- and 7-year bullet maturities.

DFS chose to partner with us given our differentiated capital offering, pre-existing relationship and consistency of coverage, which supported our deliverability.

We are excited to formalise our relationship with DFS through this investment, and we look forward to continuing to support the Company into the future.

Relationship Since 2023

“We are delighted to have completed the £50m transaction of private placement notes with PGIM for an initial 5 & 7 year period. This partnership strengthens our debt structure alongside our renewed bank facility and supports the growth ambitions of the business over the medium to long term. The strong relationship we have been able to build with PGIM over several years allowed both sides to execute the transaction with greater clarity and confidence.”

John Fallon, CFO DFS Furniture Plc

<p>“We are delighted to have completed the £50m transaction of private placement notes with PGIM for an initial 5 &amp; 7 year period. This partnership strengthens our debt structure alongside our renewed bank facility and supports the growth ambitions of the business over the medium to long term. The strong relationship we have been able to build with PGIM over several years allowed both sides to execute the transaction with greater clarity and confidence.”</p>

“Having built a strong relationship with DFS, we are delighted to formalize our partnership through an investment that enhances the Company’s diversity and availability of funding sources. We continue to have strong appetite to fund a wide range of corporates, while our patient and long-term approach allows us to provide capital at the right time for our borrowers.”

Adam Shield, Senior Director PGIM

<p>“Having built a strong relationship with DFS, we are delighted to formalize our partnership through an investment that enhances the Company’s diversity and availability of funding sources. We continue to have strong appetite to fund a wide range of corporates, while our patient and long-term approach allows us to provide capital at the right time for our borrowers.”</p>

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Adam Shield
Adam Shield

Senior Director, Europe & UK Corporate FInance

+44 20 7621 8435

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