Card Factory, the greetings care retailer that floated on the stock exchange last month, has completed the refinancing of its existing senior bank facilities.
The new senior bank facilities include a £180m term loan facility and a £20m revolving facility, both with a 5 year maturity.
Card Factory said the applicable margin is subject to an EBITDA leverage ratchet. The initial applicable margin is 2% on the term loan facility and 1.75% on the revolving facility, “resulting in a significant reduction in the interest payable when compared to the previous higher margins under the existing senior bank facilities”, Card Factory said.
The retailer had net debt on May 20, when it listed on the stock exchange, of about £160m, representing about 2x underlying EBITDA for the year ended January 31, 2014.
Card Factory’s shares tumbled after initial trading, reflecting caution from the market after a series of IPOs this year.