Frasers Group bags ‘substantial’ increase to credit facility

In a statement published on the London Stock Exchange, Frasers Group told the City it has entered into a new term loan and revolving credit facility that replaces its existing financing facilities of £1.65bn.

The new facility, which is valid for three years and has been agreed with its banks, provides the retailer with access of up to £3bn and includes an accordion option to increase this facility by up to £500m at the discretion of lenders.

Frasers Group called the increase to its facility “substantial” and said this reflects the belief of the indsutry in its ongoing elevation strategy and the “success and strength” of the group.

“The Board wishes to thank the group’s banking partners for their support,” the group added.

This comes after Frasers Group recently pulled out of the deal for struggling Revolution Beauty and confirmed it had no intention of bidding for the company.

It was also reported last month that Frasers Group was eyeing a tightening of its grip on Debenhams Group with an offer of a cash injection to the retailer amid ongoing debt refinancing discussions.

The Telegraph reported that Frasers Group owner Mike Ashley had demanded a meeting with Debenhams chair Tim Morris to discuss the possibility of becoming a lender to the group.