Debenhams completes £650 million refinancing
The department store group said the refinancing extends the maturity date for the borrowing facility to October 2015 (from October 2013) with a further option to extend to October 2016. In addition to the extension in tenor, the amended terms will reduce the group's cash interest rate by 0.50% to around 4% with immediate effect. Associated refinancing costs of around £3.3 million will be amortised over the life of the facility.
Debenhams said that the £650 million facility continues to comprise a £250 million term loan and £400 million revolving credit facility.
The mandated lead arrangers and bookrunners were Barclays Capital, Lloyds Banking Group and Royal Bank of Scotland.
Chris Woodhouse, finance director of Debenhams, said: "We are delighted to have successfully secured Debenhams' medium term funding requirements through this extension, significantly lowering the Group's interest costs in the process. Our ability to achieve such a refinancing in the current economic environment is a testament to the continued strong performance of the business."
Debenhams has a total of 167 stores in the UK, the Republic of Ireland and Denmark, and 61 international franchise stores in 24 countries.
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