New chapter as Waterstones secures £125m growth capital

Waterstones, a UK-leading high street bookseller and an iconic presence in Cambridge, has strengthened its coffers with a £125 million package of syndicated financing, jointly arranged by Barclays UK Corporate Bank and HSBC UK Bank plc.

Waterstones in Cambridge. Courtesy – Cheffins.

The lending is designed to support the company’s ongoing financing needs and future growth and includes a £75m term loan and £50m revolving credit facility.

Founded in 1982, Waterstones has become a household name with nearly 320 bookshops across the UK, Ireland, and Europe, as well as a strong online presence.

Karen Ashworth, Chief Financial Officer at Waterstones, said: “Waterstones would like to thank Barclays and HSBC for their continued partnership in increasing the syndicated facility that supports the financing needs of the business.”

Karen Johnson, Head of Retail and Wholesale at Barclays Corporate Banking, said: “We are delighted to be able to continue to support Waterstones with their financing requirements and are proud of this growing relationship. This lending is a further example of our £22 billion Business Prosperity Fund in action and shows our ongoing commitment to help businesses of all sizes invest for growth.”

James Protheroe, Senior Relationship Director at HSBC UK, added: “We are delighted to have supported on this upsized financing package for Waterstones, further cementing our relationship with this hugely popular UK retailer.”

Barclays and HSBC have acted as lead arrangers on this deal and each participated in the syndicated financing package.

Sir Tim Waterstone, Honorary Fellow of St Catharine's College in Cambridge, founded Waterstones Booksellers in 1982, setting up his first small, experimental store in Old Brompton Road, Kensington. In rapidly building a chain from this tiny base, he promoted a unique model of major and sustained exposure for literary authors.

He employed highly read and informed staff, who were passionate about literature. Under this personalised stocking, marketing and staffing model, Waterstones grew within 10 years to become the largest bookseller group in Europe. Waterstones continues to thrive and expand.