Debenhams completes Â£650 million refinancing
Debenhams has completed a refinancing of the Â£650 million senior credit facility agreed back in July 2010.
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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