Department store group Debenhams has completed its refinancing of the £650m senior credit facility it agreed in July 2010.

The refinancing extends the maturity date for the borrowing facility to October 2015, with a further option to extend to October 2016.

The amended terms will reduce the retailer’s cash interest rate by 0.5%, to around 4%.

The £650m facility comprises a £250m term loan and a £400m revolving credit facility.

Banks involved were Barclays Capital, Lloyds Banking Group, and Royal Bank of Scotland.

Debenhams finance director Chris Woodhouse said: “We are delighted to have successfully secured Debenhams’ medium term funding requirements through this extension, significantly lowering the Group’s interest costs in the process. 

“Our ability to achieve such a refinancing in the current economic environment is a testament to the continued strong performance of the business.”