Matalan has refinanced £492m worth of debt with a banking syndicate in order to fund its growth ambitions.
The fashion and homewares retailer refinanced its existing debt by issuing two new bonds worth £342m and £150m, due for repayment in 2019 and 2020 respectively.
As part of the package, Matalan’s revolving credit facility has increased from £30m to £50m.
Matalan chief financial officer Stephen Hill said: “This refinancing strengthens our financial position, providing us with a longer-term and more flexible capital structure that underpins the growth plans we have for the business.”
The banking syndicate includes Lloyds Bank Commercial Banking, Morgan Stabley and Barclays.
Paul Foster, head of Lloyds Bank’s Mid Cap team, said: “This refinancing lowers Matalan’s cost of borrowing and consolidates their medium to long term funding structures. The business is well positioned to exploit the opportunities presented by the economic revival and upswing in consumer confidence.”
The retailer reported EBITDA of £95.4m for the 53 weeks to March 1, down from £100.4m on the previous year. Total sales in the period fell to £1.122bn from £1.125bn the previous year.