Mothercare slumps on refinancing talks with lender as interest rates bite

Mothercare

04/05/2023 08:43

** Shares of baby products retailer Mothercare  MTC.L  fall
20.4% to 7p
    ** MTC top pct loser across London stocks 
    ** MTC begins discussions with its lender to change,
renegotiate, or refinance its debt facility
    ** Talks come on back of higher interest rates on co's loan,
and following delay in return to pre-COVID-19 sales levels,
particularly in Middle Eastern markets
    ** Says it may need waivers to future periods' covenant
tests
    ** Hits its lowest level since Jan 1, headed for worst day
since April 2020
    ** Including session's move, stock is down about 7% YTD

 (Reporting by Muhammed Husain in Bengaluru)
 ((Muhammed.Husain@thomsonreuters.com;))