Department store group Debenhams has refinanced debt through a £225m bond issue.
Debenhams increased the bond offering from the £220m oringinally planned to £225m.
Proceeds from the bond issue will be used to pre-pay existing credit facilities.
Once the issue is completed - the offering will close on July 2 - Debenhams will extend its existing bank financing arrangements to October 2018 with a £425m revolving credit facility.
Debenhams will be charged interest of £22m to £24m for the financial year to August 2015.
Debenhams chief executive Michael Sharp said: “This refinancing will allow us to reduce our reliance on traditional bank funding and fulfil our desire to diversify our sources of funding. In addition, we expect to achieve a material saving in interest costs over the life of the notes.
“The notes offering was well-subscribed and we believe the level of demand reflects the strength of investor confidence in our business and our strategy to build a leading international, multichannel brand.”
Barclays, Lloyds Bank and The Royal Bank of Scotland acted as joint global coordinators and joint bookrunners. Lazard provided independent advice to Debenhams.
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