Asos has secured new refinancing worth nearly £238m in a deal that will slash its interest rates by £5m each year.
The new financing comprises a £150m term loan and an £87.5m delayed draw term loan (DDTL), which both mature in November 2030.
The online fashion giant said the deal with a new syndicate of private lenders replaces its existing financing with Bantry Bay and will cut its annual interest costs by a significant amount.
Asos said it was entering the final phase of its multi-year turnaround with a “significantly strengthened balance sheet”.
It noted that the improved financial terms reflect the “enhanced profitability and significant strategic progress” of the company.
Asos chief financial officer Aaron Izzard said: “I’m pleased to announce the further strengthening of our balance sheet and financial flexibility through this strategic refinancing.
“As well as offering improved financial terms, it better positions us to deliver on the final phase of our turnaround strategy and growth plans with greater confidence and resilience.”
Asos is expected to announce its full-year results on November 21.
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